In a bid to promote the cryptocurrency status in the country, the Brazilian Congress has proposed a zero tax fee on the importation of crypto mining rigs and also green bitcoin mining (i.e. the use of renewable energy in mining.)
According to a report published on Dec. 4 by Brazilian news source Seudinheiro, a series of fresh ideas from Brazilian lawmakers could minimize the amount of criticism crypto receives in South America’s largest country.
A proposal to classify cryptocurrencies as a currency rather than a commodity was also addressed in Congress. Crypto exchanges will be permitted to provide financial services and issue loans to Brazilian residents if this plan passes.
Senator Irajá Silvestre Filho introduced all three bills in Congress. It’s unknown how much support the plans have in the legislature right now, but the Brazilian crypto community is very supportive.
According to Ray Nasser, CEO of Arthur Mining, if the tax exemption for crypto miners is passed, Brazil may become a global “Mecca of mining.”
The Central Bank of Brazil would be permitted to issue a digital real central bank digital currency if cryptocurrencies became legal tender (CBDC). Brazil would join nine other countries or jurisdictions that now issue CBDC to their citizens.
Renewable energy usage in Brazil
According to the International Trade Administration, Brazil presently produces just under half of its electricity from renewable sources. The cost per kilowatt-hour is around $0.12, which places it in the middle of the pack globally.
Taynaah Reis, CEO of Moeda, a blockchain financial business based in Brazil says:
“Crypto is rising rapidly in Brazil and the regulatory bodies have been very proactive and protective on incentivising mining and drafting policies on best practices as major businesses announced their plans on including crypto.”
Miners would also have to register their equipment with the Brazilian government in order for the ecosystem to be monitored, according to Reis.
In Brazil, where power rationing is becoming a reality, there are current power supply worries. Rationing is when limited areas of a country are given fewer quantities of electricity in order to protect the entire power grid..
While Brazil is dealing with power rationing, Rudá Pellini, the president of Arthur Mining, does not see the new influx of Bitcoin miners as a danger to the power supply:
“One of the main problems in the energy issue in Brazil is transmission. We have a large energy generation surplus in the country, and it is possible to promote greater investments in clean energy generation.”
