Brazil X Ban Lifted After Musk Pays $5 Million

Oct 09, 2024

Brazil X Ban Lifted – a Political or Business Decision?

Elon Musk’s X has always been a place for free speech, where many accounts share and communicate local news and multimedia with little restrictions compared to other social media platforms. 

This approach motivated a controversial decision by Brazil’s Supreme Court in August banning X, formerly known as Twitter. However, X is now back in service in the country.

Within 40 days of the Brazil X ban, the social media network complied with the implied court requirements, and the platform is live for around 40 million users. Let’s review this decision, its timing, and what are the anticipated implications.

Brazil Lifts X Ban  – What Happened

On 8 October, Justice Alexandre de Moraes, the Brazilian Supreme Federal Court justice, ordered a full return of X in Brazil as the network’s governing body adhered to the court ruling issued in late August.

X’s Global Government Affairs disseminated the information in a post, expressing that “it is proud” to resume service in Brazil. Elon Musk’s owned social network has been actively promoting freedom of speech since the billionaire took over X ownership.

The company agreed to pay a $5.1 million (28 million Reals) fine required by the Brazilian government to resume its service. Other criteria include appointing a legal country representative and banning accounts that spread disinformation.

Why Did Brazil Ban X?

Elon Musk often describes himself as an advocate for freedom of expression, speaking his mind, criticizing openly, and encouraging network users to do the same.

However, this approach did not sit well with the Brazilian government, especially with the approaching mayoral elections on 6 October. In August, Musk criticized the current Brazilian ruling system, including its president, court, and the 2022 presidential elections that led Lula da Silva to the chair.

In fact, Elon Musk was in close relations with the ex-president, Jair Bolsonaro, who helped introduce Starlink to the country and issued a Defense Order of Merit medal to the billionaire businessman.

Brazil’s Supreme Federal Court Justice de Moraes warned X about the spread of misinformation and false allegations against the current government. Musk challenged its Brazilian counterpart, especially after a ban move was discussed.

On 30 August, the X ban in Brazil was announced, stopping the service from millions of users who comprise the 6th largest market for the social media platform.

The Importance of This Decision

Lifting the ban of X in Brazil in less than 40 days from ceasing raises the question about a possible internal propaganda campaign regarding the mayoral elections. However, the Brazilian court stated that the ban had nothing to do with the freedom of expression or speech and was merely a legislative decision to comply with the country’s laws.

The social platform was massively affected when Brazil banned X, as the daily visits count fell dramatically from over 6 million to less than 1 million. Many of them used VPN to conceal their IP address and access X or switched to other alternatives like Bluesky and Threads.

X daily users

Conclusion

The Brazil X ban did not last long, and after 39 days of closing the X service, according to the rules of Brazil’s Supreme Court, the ex-Twitter returned to Brazil.

Justice Alexandre de Moraes stated that X paid the specified fines and agreed to comply with local rules by appointing local representatives and restricting accounts from spreading misinformation.

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South Korean CBDC – 7 South Korean Banks to Join Issuing The Digital Currency Since cryptocurrencies arrived on the financial scene and changed how people transact and transfer money, central banks have become more interested in developing their own virtual payment systems. After Russia, China, Nigeria, India, and Jamaica, South Korea is taking a major step toward introducing its own Central Bank Digital Currency in an upcoming pilot program involving the public and some major banks. The initiative aims to test the feasibility of a digital currency within the existing financial system, enabling a limited number of citizens to transact with CBDC at selected merchants and Points of Sale. This move aligns with the global trend of central banks exploring digital currencies to enhance payment efficiency, reduce transaction costs, and modernize the financial landscape. South Korea CBDC Pilot Program Bank of Korea (BOK), in collaboration with financial regulators, announced an initiative to test the rolling out of CBDC involving seven major banks and 100,000 participants. The pilot program “Project Hangang” is scheduled to run from April to June 2025, focusing on testing deposit tokens issued by banks and backed by the CBDC. These banks include KB Kookmin Bank, Shinhan Bank, Hana Bank, Woori Bank, NH NongHyup Bank, Industrial Bank of Korea (IBK), and Busan Bank. These tokens will be used for transactions in both online and offline retail environments, allowing the government and financial institutions to evaluate their effectiveness. Users and Merchants Participation The BOK is expected to announce the project by the end of March, asking 100,000 South Koreans to participate in the pilot and convert their traditional bank deposits into digital tokens for payments. Individuals will be limited to a maximum holding of 1 million WON (approximately $687) and a total transaction cap of 5 million WON during the trial’s duration. Various merchants, including convenience stores, supermarkets, coffee shops, and online platforms, will accept these tokens as payment. Notable participants include 7-Eleven, Hanaro Mart, Ediya Coffee, Silla University, and Hyundai Home Shopping. This will help assess the practicality and usability of the CBDC across different retail settings. Global Adoption of CBDC The South Korean CBDC initiative is part of a broader global trend, with many countries exploring digital currencies to modernize their financial systems. The Bank for International Settlements (BIS) has been actively promoting CBDC projects worldwide, with major economies such as China, the European Union, and the United States conducting their own trials. China’s digital Yuan e-CNY is already in an advanced phase, with widespread adoption in various sectors. The European Central Bank is also working on a digital Euro, while the US Federal Reserve is researching the potential implications of a digital Dollar. These initiatives aim to improve payment efficiency, enhance financial inclusion, and strengthen monetary policy frameworks. Conclusion South Korea’s CBDC pilot marks a significant step toward digital financial transformation. By involving the public, key banking institutions, and merchants, the trial will offer critical data on the viability of digital currencies. As more countries explore CBDCs, these findings could influence future implementations worldwide, paving the way for a more efficient payment system.

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