Brazilian taxpayers will be able to quickly repay their tax debt thanks to the action, which will also increase “access” to the ecosystem of digital assets.
Taxpayers now have a fresh and practical option to pay their debts using cryptocurrencies according to a big Brazilian bank. In a collaborative endeavor with Brazilian crypto startup Bitfy, Banco do Brasil of Brazil said on February 11 that it is now “possible” for Brazilian taxpayers to pay their tax bill with cryptocurrency.
It is available to Brazilians with crypto under the custody of Bitfy, which will operate as a “collection partner” for the giant Brazilian bank. In addition to the ease it offers users, it was observed that it might “extend” access to and use of the digital asset ecosystem with “national coverage” and the security of knowing a respected bank is protecting consumers.
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.
In a manner similar to how they purchase a “boleto,” or ticket, a common means of payment in Brazil, taxpayers will view their tax bill by scanning a barcode. 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. The law is probably going to take effect in June of this year. Brazilian residents were previously informed that taxes would be due on like-kind cryptocurrency trades, such as trading Bitcoin for Ether ETH, in May 2022.
Brazilian cryptocurrency traders do not always have to disclose every transaction, though. The regulatory body has determined that only investors who transact in cryptocurrency for more over 35,000 reals (about $6,711) must pay income tax.