Brazil’s Oldest Bank Allows Residents to Pay Taxes Using Crypto

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A major Brazilian bank is offering a convenient new option for taxpayers to pay their dues using cryptocurrencies.

According to a statement released by Brazilian bank Banco do Brasil on February 11, it is now “possible” for Brazilian taxpayers to pay their tax bill with crypto under a joint initiative with Brazilian crypto firm Bitfy.

It is available to Brazilians with crypto under the custody of Bitfy, which will act as a “collection partner” for the major Brazilian bank.

He noted that in addition to the convenience it brings to customers, it could “expand” use and access to the digital asset ecosystem with “national coverage” while having the comforts of a reputable bank. ensuring consumer protection.

Lucas Schoch, Founder and CEO of Bitfy, added that “the new digital economy is a catalyst for a future full of benefits”.

The statement said crypto users would experience a simple process, with tax details displayed along with the amount of reals, Brazil’s official currency, that would need to be converted into their chosen cryptocurrency to pay the bill.

Taxpayers will have access to their tax bill by scanning a barcode, in the same way that they pay a “boleto”, i.e. a ticket, a popular payment method in Brazil.

Related: Brazil could solidify its status as an economic leader thanks to the move of the CBDC in 2024

The move comes after the Brazilian city of Rio de Janeiro started accepting cryptocurrencies as tax payment in October 2022.

In December 2022, Brazil adopted a regulatory framework that legalizes the use of cryptocurrencies as a means of payment in the country.

The law will probably come into force in June this year.

Brazilian citizens were already informed, in May 2022, that they would be required to pay taxes on similar crypto transactions, for example when exchanging Bitcoin (BTC) for Ether (ETH).

However, not all crypto investors in Brazil need to report their trades. The regulator establishes that only investors who trade more than 35,000 reals (around $6,711) in crypto should pay income tax.

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