Banco do Brasil and Bitfy Collaborate to Offer Crypto Tax Payment Option in Brazil
Author:A major bank in Brazil has introduced a new and convenient method for taxpayers to pay their taxes using cryptocurrencies.
Banco do Brasil, a Brazilian bank, has announced in a statement on February 11th that Brazilian taxpayers can now pay their taxes using cryptocurrency, in collaboration with Bitfy, a Brazilian cryptocurrency company.
The statement pointed out that not only does it provide ease to clients, but it has the potential to broaden the utilization and access to the digital asset ecosystem across the country while being supported by a trustworthy bank that offers consumer protection.
According to Lucas Schoch, the CEO and founder of Bitfy, the growth of the digital economy has the potential to bring many benefits in the future.
According to the statement, crypto users will have an easy time paying their bills as the tax information will be shown along with the amount in reals, which is the official currency in Brazil, that needs to be converted into the selected cryptocurrency.
Taxpayers in Brazil will be able to view their tax bill by scanning a barcode, similar to the process of paying a "boleto," which is a widely used payment method in the country.
This action was taken following the initiation of cryptocurrency acceptance in Rio de Janeiro as a means of paying taxes starting in October 2022.
In December 2022, Brazil established a legal framework that permits the use of cryptocurrencies as a form of payment within its borders.
It is expected that the law will be implemented in June of this year.
In May 2022, Brazilian residents were informed that they will be obligated to pay taxes on crypto transactions of similar types, such as exchanging Bitcoin for Ether.
The regulatory authority in Brazil determines that only crypto traders who make trades worth over 35,000 reals ($6,711) are required to pay income tax. It means that not every crypto investor in Brazil must declare their trades.