Bitcoin Could Become Legal Currency in Brazil

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Brazil is somewhat known for its organized crime and corrupt politicians. Dilma Rousseff – Brazil’s first female president – was impeached for criminal administrative misconduct and disregard for the federal budget. During her campaign for the presidency, she was also pulled up for irregularities in her campaign funds. It is exactly things like this João Amoêdo – Brazilian New Party candidate – wants to prevent from happening again by implementing blockchain technology in government. In addition to this, he also hinted at making Bitcoin a legal currency in Brazil.

Bitcoin and Blockchain Could End Corruption

Due to the fact blockchains are in the public domain and with a simple block searching tool, anyone can discover what was included in the blocks added to the chain. This means that corruption will be easier to discover and subsequently stamp out in global politics. In addition to preventing corruption through an immutable record of history, Bitcoin also provides a solid case for being adopted as a formal currency – largely due to its transparent nature. For example, in the case of Rousseff’s irregular campaign fund donations, by implementing simple KYC checks upon donation in Bitcoin, the funds could be traced back to the originating donor and verified as a legitimate source. This is something similar to what Andrew Yang is already doing in the run-up to the American 2020 presidential elections.

Supply Chain Management Solution

Amoêdo has frequently criticized the lack of resources devoted to the supply chain management of consumer goods in Brazil. A lot of food is being contaminated, with the government’s National Health Surveillance Agency struggling to discover at exactly what stage in the supply chain this is happening. Due to this, it is putting more strain on the health care system and people are becoming sick, with mortality rates on the rise. By implementing blockchain in the supply chain, Amoêdo hopes to be able to trace the contamination back to the source and eradicate it, making Brazil a safer and healthier place to live in the process.

Brazil to Welcome Bitcoin with Open Arms

Brazil already has a number of crypto exchanges – such as Criptohub and Braziliex. Amoêdo thinks that with regulation – similar to what Malta recently adopted into national law – these exchanges can flourish. He doesn’t see cryptocurrencies as a threat to the banking industry, but feels that the two industries can work together to provide more payment options for the people of Brazil, opening doors to more trade options around the globe. In an interview, Amoêdo said, “As a means of payment, I see no doubts that bitcoin can be understood as a legal payment method. If both parties want to exchange a product via bitcoin, I do not see any legal barriers to doing so.”
Cryptocurrencies and blockchain technology have the ability to rid Brazil – and the world for that matter – of corruption and fraud. There are many strong cases for the implementation of cryptocurrencies and blockchain technology, it simply requires forward-thinking government officials like Amoêdo and Silvio Schembri. If Amoêdo wins the election, we could see Brazil transformed into a crypto haven, where blockchain and verified transactions become a part of day to day life.