all about cryptop referances
Brazilians will now be able to pay part of their state taxes using cryptocurrency. Banco do Brazil, a mixed-ownership bank, is launching the ability to pay a set of taxes with crypto, using Bitfy, a Brazilian cryptocurrency startup, as a payment processor, exchanging the cryptocurrencies paid for Brazilian reals on the fly.
Cryptocurrencies are making inroads when it comes to their ease of use in Brazil. Banco do Brazil, one of the oldest banks in Brazil, and partially owned by the Brazilian government, has added the ability for Brazilians to pay government taxes with cryptocurrencies using their platform. The bank uses the services of Bitfy, a cryptocurrency payment processor, as a bridge to complete these payments, according to reports.
The company advertises its solution as the first of its kind, saying that the use of blockchain technology will optimize public processes, bringing more transparency and credibility to institutions. Lucas Schoch, CEO and founder of Bitfy, stated:
We will drive the introduction of the new defi economy, develop the necessary infrastructure to increase autonomy and democratize the use and access to the digital asset ecosystem throughout Brazil.
Bitfy, which received an investment from Banco do Brazil in November that wanted to integrate tokenization and payment services into its portfolio, also announced the range of cryptocurrencies supported for these payments. Among these are bitcoin, ethereum, decentraland, chainlink, algorand, solana, ripple, polkadot, lavanche, dash and binance coins, which must be deposited on the app wallet to be used.
This development is possible due to agreements that Bitfy has entered into with government institutions, expanding the reach of the tax payment tools across the country. The process of paying taxes with this tool will include entering a payment number or scanning a barcode for the payment, which will be processed by Bitfly immediately, exchanging cryptocurrencies for Brazilian reals and transferring them to the institutions.
The announcement brings a new use for cryptocurrencies in the country, following the recent sanction of a cryptocurrency law that opens the door to the inclusion of these assets in more financial activities in Brazil.
Binance is also working to gain a share of the crypto payments market in the country, having announced the launch of a prepaid crypto card in January as part of its expansion push in Latam.
What do you think about Banco do Brazil and the opportunity it gives Brazilians to pay taxes with cryptocurrency? Tell us in the comments section below
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