Bank of Brazil now allows citizens to pay taxes with crypto
The Bank of Brazil, aka Banco do Brasil, has announced that citizens can now pay their taxes with cryptocurrency. According to a post on its official website, Brazil’s oldest bank stated that this financial development is possible via a partnership with Bitfy, a popular blockchain solutions company with investment in BB’s Corporate Venture Capital Program (CVC).
Through this collaboration, Brazilians who hold cryptocurrencies with Bitfy can now easily pay taxes, fees and government obligations using their assets. The mechanism behind this service is similar to customers paying for a ticket by capturing a barcode. Using the Bitfy app, taxpayers simply need to select their preferred cryptocurrency for payment and then scan a barcode before proceeding to confirm payment.
Bank of Brazil leads the way
The introduction of this technology only emphasizes Bank of Brazil’s position as a leading force in modern financial solutions. In addition to providing a convenient and easily accessible tax payment method for citizens, the successful passage of this initiative could potentially change the banking landscape.
It is also worth noting that Bank of Brazil’s contract with Bitfy also allows all partners – fintech, financial institutions – of the state-owned bank to extend similar tax payment options to its customers based on existing agreements between BB and certain public service agencies.
Commenting on this fascinating development, the founder and CEO of Bitfy said, “tThe new digital economy is the catalyst for a future full of benefits. This partnership makes it possible to expand the use and access to the ecosystem of digital assets with national coverage and with the seal of security and reliability of Banco do Brasil.”
Interestingly, the Bank of Brazil is popular for its friendly involvement in the crypto space. In April 2021, BB became the first state-owned bank in Brazil to offer its clients exposure to a crypto exchange-traded fund (ETFs).
Cryptocurrency in Brazil
The Federal Republic of Brazil is considered one of the most crypto-friendly nations in the world, with regulations and policies aimed at increasing the use of cryptocurrency and other digital assets among its citizens.
In December last year, Brazilian President Jair Bolsonaro signed a bill that provides a comprehensive regulatory framework for the use and trading of cryptocurrency in the country.
Current total crypto market capitalization valued at $971.47 billion | Source: TOTAL chart on TradingView.com.
Under these new regulations, the Brazilian government legitimized cryptocurrency as a means of payment or investment in the Latin American nation.
Although the bill does not grant any cryptocurrency the status of a “legal tender,” the mere recognition of these digital assets by the law of the land will significantly spur adoption to greater heights.
In addition to Brazil’s government, several financial institutions such as the Bank of Brazil have shown great interest in cryptocurrency in recent years. Indeed, it is noted that Brazilian banking firms offer the highest number of ETFs in Latin America.
Featured image: Forbes, chart from TradingView.
