A bill to regulate the use of cryptocurrency is likely to be passed in Brazil in the coming days.

Brazilians may be allowed to buy houses, cars, and fries at McDonald’s (NYSE: MCD) using bitcoin, according to Federal Deputy Aureo Ribeiro (pictured above). That’s if Bill 2.303/15, which calls for the regulation of virtual currencies, is approved by the country’s Plenary of the Chamber of Deputies this week. (Yahoo Finance)

Bitcoin as legal tender – Brazil may follow El Salvador’s lead

“We want to separate the wheat from the chaff, create regulations so that you can trade, know where you’re buying and know who you’re dealing with,” Ribeiro said. “With this asset you will be able to buy a house, a car, go to McDonald’s to buy a hamburger – it will be a currency in the country as it happened in other countries.”

A survey by Sherlock Communications through research platform Toluna found that nearly half (48%) of Brazilians were in favor of their country adopting bitcoin. Of this 31% agreed and 17% were strongly in favor of the idea.

However, Brazil will allow bitcoin legal status in the country only if the crypto is backed by appropriate regulatory checks and balances.

Protection of the public

The proposed bill among other things, raises the fine for digital currency money laundering to two-thirds of the laundered amount.

It also proposes raising the maximum jail time to 16 years and eight months for convicted offenders, and the minimum sentence to four years. These sentences previously stood at 10 years and three years, respectively.

According to Ribeiro, over 300,000 people have been victimized by digital currency-related pyramid schemes.

“With the lack of regulation, people have nowhere to turn,” he said. “The market will advance and adjust in Brazil. There will no longer be profiteers using technology to deceive millions of Brazilians.”

“This will allow transactions of this asset in our country, which will be regulated by a government agency,” he added, referring to the pending crypto legislation. “We already made an agreement with both, Central Bank and the Securities and Exchange Commission of Brazil (CVM), over opportunities of this asset and its recognition within, for example, real estate value or currency of daily use.”

Related Story: El Salvador Makes History Adopting Bitcoin As Legal Tender Alongside The US Dollar

Image Credit: Wikipedia