Key Highlights:
- Banco do Brasil, the country’s oldest bank, will let citizens use Crypto to pay their taxes.
- The bank claimed that the effort would increase user convenience.
- Recently, the Brazilian government has taken a number of pro-crypto actions.
The Bank of Brazil, often known as Banco do Brasil, has announced that taxpayers can now make bitcoin payments. Brazil’s oldest bank claimed in a post on its website that this financial development was made possible thanks to a relationship with Bitfy, a well-known provider of blockchain technologies that has invested in BB’s Corporate Venture Capital Program (CVC).
Banco do Brasil is now at the forefront of “new financial technologies” as a result of this action. It accepts contemporary issues and gives users access to the most recent financial innovations. The bank’s embrace of Crypto for tax payments will improve consumer convenience and increase the choices available to the government for tax collection.
Brazil and Crypto Adoption
Taxpayers will get access to their tax bill by scanning a barcode, precisely the way they do when buying a “boleto,” or ticket, a specific payment option in Brazil. The largest city in Brazil, Rio de Janeiro, started accepting bitcoin as a form of tax payment in October 2022.
Brazil enacted legislation in December 2022, creating a regulatory framework for Crypto use domestically. The bill will most likely take effect in June of this year. However, Brazilian citizens have already been warned that starting in May 2022, taxes will apply to transactions involving like-kind Cryptos, such as exchanging Bitcoin for Ether.
However, all bitcoin dealers in Brazil are not required to declare their transactions. According to the government, only investors who transact in Cryptos worth more than 35,000 reals ($6,711) are required to pay income tax.
