Brazil’s central bank president endorses crypto regulation

Central bank head Roberto Campos Neto recognizes the demand for greater crypto regulation as the country evolves in the market.

Speaking at an online event organized by the Council of the Americas, Roberto Campos Neto, president of the Central Bank of Brazil, shared his views on transparent payments networks, the country’s central bank digital currency project and crypto regulation.

Campos Neto has been a staunch advocate of the cryptocurrency space since taking office in 2019. His progressive policy-making has been an encouragement to investors and organizations alike, ambitious to modernize the Brazilian financial infrastructure.

During the event, Campos Neto mentioned several ongoing discussions with Brazil’s Securities and Exchange Commission on how to welcome cryptocurrencies into the regulatory landscape:

“The financial market is changing so much that it’s all becoming data. We need to reshape the world of regulation.”

Fernando Carvalho, CEO of QR Capital, told Cointelegraph Brasil last month:

“Brazilian regulators are recognizing the maturation of the crypto market and understanding that it is important to offer regulated products to investors looking forward to exploring these new asset classes.”

Brazil has made notable headlines over the past few years following developments of a government-backed digital payments initiative called Pix, which has garnered over 96 million users, a 45% representation of the nation. Pix has partnered with crypto exchange OKEx to facilitate Tether (USDT) purchases in exchange for Brazilian real.

Additionally, a new exchange-traded fund (ETF) titled BITH11 was launched in Brazil last week from investment firm Hashdex Asset Management. The firm reports that this is the country’s first eco-centric Bitcoin (BTC) ETF, with objectives to contribute 0.15% of its liquid assets into carbon credits and eco-tech each year.

Amid Brazil’s commendable advancements in the cryptocurrency space, Campos Neto is keen to acknowledge the importance of advancing regulation to match the demands of innovation, asking:

“How can we reshape the word ‘regulation?’ Finance will become about data. It will be impossible to regulate financial transactions without understanding the regulation of data.”