A major Brazilian bank is providing taxpayers with a fresh and practical way to pay their taxes using digital currency.
Brazilian taxpayers can now pay their tax bill using cryptocurrency thanks to a collaborative endeavor with Brazilian crypto company Bitfy, according to a statement released by Brazilian bank Banco do Brasil on February 11.
Brazilians can use it if they have cryptocurrency in Bitfy’s custody, which will serve as a “collection partner” for the main Brazilian bank. In addition to the convenience it offers clients, it was observed that it may “extend” use and access to the ecosystem of digital assets with “national coverage” and the security of a respected bank offering consumer protection.
The founder and CEO of Bitfy, Lucas Schoch, continued, “The new digital economy is a catalyst for a future full of benefits.” According to the statement, using a cryptocurrency would be a simple process, with the tax information provided along with the quantity 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 common 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 approved a regulatory framework in December 2022 that makes it acceptable to utilize cryptocurrency as a form of payment there.
Most likely, the bill will go into effect in June of this year. Brazilian nationals were previously informed that they will be liable for taxes on like-kind cryptocurrency trades, such as exchanging Bitcoin (BTC $21,982) for Ether (ETH $1,541), in May 2022.
But not all Brazilian cryptocurrency traders are required to disclose their transactions. Only investors who transact in cryptocurrency for more than 35,000 reals ($6,711) are required to pay income taxes, according to the commission.
