Brazil’s oldest bank allows residents to pay their taxes with crypto
A major Brazilian bank, Banco do Brasil, is offering a new and convenient option for the country’s residents to pay their taxes with crypto. According to a statement released by the Brazilian bank Banco do Brasil on 11 February, it is now “possible” for Brazilian taxpayers to pay their tax bill with crypto in a joint initiative with the Brazilian-based crypto company Bitfy.
This announcement places Banco do Brasil at the forefront of “new financial technologies.” It embraces modern solutions and gives users access to the latest financial technology. The Bank’s adoption of crypto for tax payments will bring greater convenience to users and expand opportunities for tax-collecting authorities.
Increasing acceptance of cryptocurrencies
Lucas Schoch, CEO of Bitfy said “The new digital economy is a catalyst for a future full of benefits. This partnership will allow us to expand the use of and access to the ecosystem of digital assets with a national reach.”
The process of paying taxes with crypto is simple, the user chooses the crypto asset they want to pay with. The conversion to the Brazilian real, the national currency, is immediate. Users can access their tax information by scanning a barcode or entering their tax number and can validate the data before confirming payments.
Brazil is becoming a more crypto-friendly nation, as in December 2022 the country’s president signed a bill legalising the use of cryptocurrencies.
The law in Brazil considers several cryptocurrencies as legal methods of payment, although Brazilian law does not recognise Bitcoin as a legal tender. It also established a licensing regime for crypto companies, defined crypto-related crimes and regulated transactions. The law will enter into force in June 2023.
One step ahead
The number of crypto users in Brazil has increased, and the country now ranks seventh on the Chainalysis 2022 Global Crypto Adoption Index. Institutional use of cryptocurrencies has also increased, with more than 12,000 companies declaring they own crypto assets in August 2022.
The pro-crypto actions of the Brazilian government have recently received praise from Ripple CEO Brad Garlinghouse, who praised the government for providing “leadership” and “clarity” for the crypto industry.
“Taking a moment back from what’s happening in the US – just in the last few weeks the number of positive (or at least moving towards CLARITY) global regulatory developments has been stimulated,” says Garlinghouse.
Banco do Brasil’s partnership with Bitfy marks an important milestone in the adoption of cryptocurrencies in Brazil and further consolidates the country’s position as a leader in the crypto industry. The Bank’s commitment to provide its customers with access to the latest financial technology is a positive step for the Bank and the country.
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