Major Brazilian bank allows residents to pay their taxes with crypto

Share IT

Key Takeaways:

  • Banco do Brasil to allow its users to pay taxes in cryptocurrency.
  • The program is made possible by a collaboration with Bitfy.

A prominent Brazilian bank is providing taxpayers with a fresh and practical way to pay their taxes using digital currency.

According to a statement released on February 11 by the Brazilian bank Banco do Brasil, Brazilian taxpayers can now “perhaps” pay their tax bill using bitcoin due to a collaborative effort with the Brazilian cryptocurrency business Bitfy. Brazilians can use it if they have cryptocurrency in Bitfy’s custody, which will serve as a “collection partner” for the leading Brazilian bank.

It was noted that in addition to the ease it provides customers, it may “extend” use and accessibility to the ecosystem of digital assets with “national coverage” and the assurance of a reputable bank guaranteeing consumer protection. Lucas Schoch, the CEO of Bitfy, stated:

“This partnership makes it possible to expand the use and access to the ecosystem of digital assets with national coverage,”

According to the statement, using a cryptocurrency would be a simple process, with the tax information provided along with the number of reals, the Brazilian real, that should be translated into the preferred cryptocurrency to pay the payment.

By scanning a barcode, taxpayers will have access to their tax bill, just like they do when purchasing a “boleto,” or ticket, a standard payment option in Brazil. This action follows Rio de Janeiro, Brazil’s largest city, which began accepting cryptocurrency as tax payments in October 2022.

Brazil passed legislation in December 2022 establishing a legal framework for the domestic use of cryptocurrencies. Most likely, the bill will go into effect in June of this year. Brazilian nationals were previously informed that they would be subject to taxes on like-kind cryptocurrency trades, such as trading Bitcoin for Ether, in May 2022.

However, all Brazilian cryptocurrency traders do not have to disclose their transactions. According to the authority, only investors who transact in cryptocurrencies worth more than 35,000 reals ($6,711) are subject to paying income tax.

With its PIX system and recently passed crypto-friendly legislation, Brazil has pioneered advances in digital payments. Tests are being conducted on the digital currency the central bank planned to introduce in 2019.

Share IT
Deep
Deep

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!