The measure will make it easier for Brazilian taxpayers to repay their tax responsibilities while also broadening “access” to the digital asset market.
A major Brazilian bank is providing a new and quick way for taxpayers to pay their taxes using cryptocurrency.
According to a statement released on February 11 by Brazilian bank Banco do Brasil, it is now “possible” for Brazilian taxpayers to pay their tax bill using cryptocurrency as part of a collaborative endeavor with Brazilian-based crypto business Bitfy.
It is accessible to Brazilians who have crypto stored with Bitfy, which will operate as a “collection partner” for the large Brazilian bank.
It added that, in addition to the convenience it provides clients, it has the potential to “extend” the usage and access to the digital asset ecosystem with “national coverage” and the security of a recognized bank giving consumer protection.
Bitfy’s creator and CEO, Lucas Schoch, stated that the “new digital economy is a catalyst for a future full of benefits.”
According to the statement, crypto users will have a simple experience, with the tax information given alongside the amount of reals, Brazil’s official currency, that should be translated into the selected cryptocurrency to pay the payment.
Taxpayers will be able to see their tax bill by scanning a barcode, similar to how they would pay for a “boleto,” or ticket, which is a common payment method in Brazil.
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This action comes after the Brazilian city of Rio de Janeiro began accepting cryptocurrency as tax payments in October 2022.
Brazil enacted a legislative framework in December 2022 that legalizes the usage of cryptocurrency as a payment mechanism inside the nation.
The legislation is expected to go into force in June of this year.
Brazilian nationals were previously informed that they will be compelled to pay taxes on like-kind crypto exchanges, such as trading Bitcoin BTC, beginning in May 2022.
However, not all cryptocurrency investors in Brazil are required to register their transactions. Only investors who deal in crypto for more than 35,000 reals (about $6,711) must pay income tax, according to the agency.