Brazil has not designated Bitcoin as legal tender, but it did the next best thing: it passed a law legalizing cryptocurrencies as means of payment throughout the country, giving a regulatory boost to the adoption of digital currencies and the expansion of the ecosystem.

Brazil’s Chamber of Deputies approved a regulatory framework legalizing the use of cryptocurrencies as means of payment in the country.

The document—signed under code PL 4401/2021—provides for the inclusion of virtual currencies and frequent traveler rewards from airlines (the popular “miles”) in the definition of “payment agreements” under the supervision of the country’s Central Bank.

The law, which is already approved and only requires the signature of the President of the Republic to be enacted, gives legal status to payments in cryptocurrencies for goods and services—but does not grant them the status of legal tender.

Brazil has made considerable progress in terms of cryptocurrency regulation and adoption among investors. It is currently the country with the most cryptocurrency ETFs in Latin America, and most of the country’s major banks and brokers currently offer some type of exposure to cryptocurrency investments or similar services like custody or token offerings. Even Itaú, one of Brazil’s largest private banks is working to tokenize assets as part of its future pack of services to investors.

After the law comes into place, it will be up to the executive branch of the government (the…