Due to a joint venture between one of the oldest banks in Brazil, Banco do Brasil and Brazilian-based crypto firm Bitfy, Brazilians will now have the opportunity to pay their tax bill with cryptocurrency.
It would be recalled that the City of Rio de Janeiro started accepting cryptocurrencies as payments for taxes in October 2022. While passing a decree that will allow the government to accept crypto as property tax, the city noted that it is looking for crypto firms to operate its tax property seasoning in 2023
A statement published by the bank on the 11th of February, 2023 noted that besides the convenience it brings to customers, it could “expand” the use and access to the digital asset ecosystem with “national coverage” while having the comfort of a reputable bank providing consumer protection.
Speaking on the development, the Founder and CEO of Biffy, Lucas Schoch stated that the “new digital economy is a catalyst for a future full of advantages”.
The statement added that the process will be swift and straightforward, making it easy for everyone and anyone to access without prior technical knowledge. The tax details would be displayed along with the amount of reals, the official currency of Brazil, that should be converted into the chosen cryptocurrency to pay the bill.
Meanwhile, Investors King learnt that In December 2022, Brazil passed a regulatory framework that legalises the use of cryptocurrencies as a payment method within the country.
The South American country also declared that citizens will be required to pay tax on like-kind crypto trades, for example, swapping Bitcoin for Ethereum. The regulator however establishes that only investors who trade more than 35,000 reals (around $6,711) in crypto should pay income tax.
Brazil is a crypto major country. It is estimated that 16 million people, 7.8% of Brazil’s total population, currently own cryptocurrency while several global exchanges like Binance, Coinbase, and Crypto.com, see the country as Latin America’s main market in 2022.
