The president of Brazil’s central bank, Roberto Campos Neto, has defended the use of softer regulations in the crypto environment. Campos Neto said that while regulation is indeed necessary, it must be done in a way that does not hinder innovation. He also explained that his goal is to connect numbers to the regulated world.
Brazil’s Central Bank Governor Criticizes Tough Measures for Crypto Regulation
When it comes to cryptocurrencies and central bank digital currencies (CBDCs), central banks in several countries around the world are starting to take a stand. During the debate on “Regulation of Cryptocurrencies in Brazil and the World,” the President of the Central Bank of Brazil, Roberto Campos Neto, offered his views on the regulation of cryptocurrencies.
According to Campos Neto, regulation of these tools should allow for innovation and growth in cryptocurrency investments. He says:
In general, central bankers want tough regulation. I understand, but I disagree. Perhaps such regulation is wrong…we should not throw away the technological advancements that come with it.
Furthermore, Campos Neto detailed that one of his goals is to integrate the digital and regulatory worlds in a way that is different from other central banks.
João Pedro Nascimento, chairman of Brazil’s Securities and Value Commission (CVM), also said he had a similar idea, saying that regulation should not stifle the growth of the crypto market. He declared:
Banning revolution is not something we would do.
Nascimento has previously announced that there is a natural need for cryptocurrency regulation due to technological developments. The CVM has issued an advisory opinion on encryption and its handling, which is under review and will be used until encryption-centric laws are approved.
The country’s legislative process for approving cryptocurrency bills is quite advanced. A cryptocurrency-centric bill that would help bring clarity to the cryptocurrency market and virtual asset service providers is awaiting discussions at the Deputy Chamber of Commerce in September. However, the discussion could be delayed again as the popular vote to elect the president, vice president and members of Congress looms.
What do you think of the President of the Central Bank of Brazil’s view on cryptocurrency regulation? Let us know in the comments section below.
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