Brazilian bank allows to pay taxes to cryptocurrency
2023.02.12 04:46
Brazilian bank allows to pay taxes to cryptocurrency
By Ray Johnson
Budrigannews.com – Taxpayers in Brazil can now use cryptocurrencies to pay their debts thanks to a brand-new and user-friendly option provided by a major bank.
In a joint initiative with the crypto firm Bitfy, the Brazilian bank Banco do Brasil said on February 11 that it is now “possible” for Brazilian taxpayers to pay their tax bill using cryptocurrency.
It is available to Brazilians who keep their cryptocurrency in Bitfy’s custody, which will serve as the major Brazilian bank’s “collection partner.”
It said that in addition to making customers’ lives easier, it could “expand” the use of and access to the digital asset ecosystem with “national coverage” while maintaining the comfort of a reputable bank that protects customers.
The “new digital economy is a catalyst for a future full of advantages,” according to Bitfy CEO Lucas Schoch.
The tax information and the equivalent amount of Reais, Brazil’s official currency, being converted into the chosen cryptocurrency were said to be straightforward for cryptocurrency users.
Similar to the popular Brazilian payment method known as “a boleto,” which translates to “ticket,” taxpayers will be able to access their tax bill by scanning a barcode.
In October 2022, the Brazilian city of Rio de Janeiro began accepting cryptocurrencies as tax payments.
In December 2022, Brazil passed a regulatory framework that makes cryptocurrency use as a form of payment legal in the country.
It is likely that the law will take effect in June of this year.
In May 2022, Brazil’s citizens would be required to pay taxes on like-kind cryptocurrency trades, such as exchanging Bitcoin (BTC) for Ethereum (ETH).
However, the regulator determined that only investors who trade more than BRL 35,000 (approximately $6,711 US) in crypto should pay income tax. This means that not all crypto investors in Brazil are required to declare their trades.
