Banco do Brasil, a major bank in Brazil, has joined forces with Brazilian-based crypto firm Bitfy to offer a new way for taxpayers to settle their taxes using cryptocurrencies. This move makes it possible for Brazilian taxpayers to pay their tax bill with crypto and brings convenience to customers.
Advantages of the Partnership
The partnership aims to expand the use and access to the digital asset ecosystem with national coverage. At the same time, it offers the comfort of a reputable bank providing consumer protection. Lucas Schoch, Bitfy’s founder and CEO, stated that the “new digital economy is a catalyst for a future full of advantages.”
The statement released by Banco do Brasil stated that crypto users would experience a straightforward process. Tax details, along with the amount of reals that should be converted into the chosen cryptocurrency, would be displayed for payment of the bill. Taxpayers can access their tax bill by scanning a barcode, similar to the popular payment method “boleto” in Brazil.
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Legalizing Cryptocurrency as a Payment Method
In October 2022, the city of Rio de Janeiro in Brazil started accepting cryptocurrencies as payments for taxes. In December of the same year, Brazil passed a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country. The law is expected to come into effect in June 2023.
In May 2022, Brazil’s citizens were informed that they would be required to pay taxes on like-kind crypto trades. However, not all crypto investors in Brazil need to declare their trades. The regulator only requires investors who trade more than 35,000 reals, approximately $6,700, in crypto to pay income tax.
