Legislative idea calls for the creation of a national cryptocurrency twice the price of the Real

One Brazilian Asks Government To Create National Cryptocurrency To Have Twice The Reala currency that is going through a difficult phase of inflation and loss of purchasing power, even after measures taken by the Central Bank of Brazil to try to contain the problem.

According to the idealist, this proposal should be part of a National Law on Economic Development†

According to data released by Bacen itself, inflation in the past 12 months is at 12.13%, even with a Selic rate of 12.75%. In other words, the population’s loss of purchasing power continues to collapse, even with the recent measures taken by the autarchy hard to control the inflation that is hitting the Real so hard.

Brazilian Makes Unusual Proposal for a National Cryptocurrency Twice as Expensive as the Real

Over the past two years in particular, central banks around the world have printed a lot of money to contain the effects of the crisis on global health. As a result, inflation on a global scale increased and also affected the Brazilian population.

With the pressure on consumption, many have already realized that the purchasing power of the national currency is no longer the samea situation that has worsened in recent months.

In this way, Brazilian Luis Gustavo Rodrigues Teles, who lives in Maranhão, sent a legislative idea to the National Congress, requesting the creation of a national cryptocurrency worth twice the value of the current Real.

According to him, if the government creates a new national currency and freezes the prices of services and products, the population will be able to consume more, just as the government would collect more taxes.

“If the federal government freezes the prices of services and products and changes the new currency to the old one, [SIC]will double the population’s consumption, business sales, industrial production and tax collection (GDP).

This measure appears to be the same as the one in the early 1990s, when Brazil was experiencing hyperinflation. However, on that occasion, changing the currency and freezing prices did not bring much practical results.

The Brazilian also failed to explain why artificially doubling, tripling or valuing the Real would yield practical results. If your proposal gets 20,000 votes, it must be submitted to the National Congress for consideration and can become a bill.

True digital project guarantees parity with physical currency

The idea of ​​creating a new currency has already passed through the current management of the Central Bank of Brazil, which is studying the launch of the digital Real soon. However, according to the project, the new CBDC currency arriving to compete with bitcoin will not be “double the value”, but will be equal to the physical currency.

In other words, contrary to what the drafter of the legislative idea expects, which has only 1 backing yet, the government does not indicate it will endorse the practice of double valuing a coin just because it is new.