The president of the Central Bank of Brazil, Roberto Campos Neto, has defended the use of more moderate regulations in the crypto environment. Campos Neto stated that while regulation is necessary, it must be done in a way that doesn’t stop innovation. He also explained that his goal is to connect with the regulated world.
Brazil Central Bank President Criticizes Harsh Approach to Crypto Regulation
Central banks in several nations around the world are beginning to establish their stances. Establishing stances comes to cryptocurrencies and central bank digital currencies (CBDCs). In “The Regulation of Cryptocurrencies in Brazil and the World,” a discussion event, the President of the Central Bank of Brazil, Roberto Campos Neto, presented his thoughts on the regulation of cryptocurrencies.
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According to Campos Neto, the regulation of these instruments must be done in a way. It allows innovation and growth of cryptocurrency investments. He stated:
“In general, central bankers want to regulate with a heavy hand. I get it, but I don’t agree. Maybe it’s a regular mistake like that… We must not leave behind the technological advances that will come with this.”
Campos Neto explained that one of his objectives is to integrate the digital and regulatory world, in a different way than what other central banks are doing.
Similar opinions
The president of the Brazilian Securities and Exchange Commission (CVM), João Pedro Nascimento, also stated that he had similar ideas saying that regulation should not stifle the growth of the crypto market. Declared:
“Banning a revolution is not something we are going to do.”
Nascimento had before stated that there is a natural demand for cryptocurrency regulation as a consequence of the evolution of technology. The CVM has proposed an advisory opinion on crypto and its treatment, which is under review, to be used before a crypto-centric law is enacted.
The legislative process to pass a cryptocurrency bill is quite advanced in the country. A cryptocurrency-focused bill would help bring clarity to crypto markets and virtual asset service providers. It is currently awaiting discussion by the deputy chamber in September. However, due to the proximity of the general vote to elect the president, vice president, and members of Congress. This discussion could be delayed again.