Brazil’s legislature debated multiple resolutions supporting a tax exemption for miners and elevating bitcoin to the status of a national currency.
A new proposal before the Brazilian Congress would exclude both the importation of cryptocurrency mining equipment and mining done using renewable energy sources from taxes.
According to a Dec. 4 storey from Brazilian news site Seudinheiro, a series of fresh measures from Brazilian politicians might help mitigate crypto’s negative reputation in South America’s biggest nation.
Additionally, Congress heard a proposal to classify cryptocurrencies as a currency rather than a commodity. If this plan is approved, cryptocurrency exchanges would be permitted to provide financial services and make loans to Brazilian people.
Senator Irajá Silvestre Filho presented Congress with all three suggestions. While it is unknown how much support the plans have in the legislative at the moment, the Brazilian crypto community seems receptive.
According to Ray Nasser, CEO of Arthur Mining, if Brazil obtains a tax break for cryptocurrency miners, the country may become a worldwide “Mecca of mining.”
The Central Bank of Brazil would be permitted to create a digital real central bank digital currency if bitcoin becomes a legal tender (CBDC). Brazil would join nine other nations or jurisdictions that already issue CBDC to its citizens.
According to the International Trade Administration, Brazil presently generates slightly under half of its power from renewable sources. The cost per kilowatt hour is around $0.12, which places it roughly in the centre of the worldwide pack.
Taynaah Reis, CEO of Moeda, a blockchain financial business located in Brazil, told Cointelegraph: “Crypto adoption is accelerating in Brazil, and regulatory agencies have been quite aggressive and protective in terms of incentivizing mining and crafting laws on best practises in response to significant firms announcing intentions to include crypto.”
Additionally, Reis said that miners will be required to register their equipment with the Brazilian government in order for the government to monitor the environment.
In Brazil, where power rationing is becoming a reality, there are actual power supply worries. Power rationing refers to the practise of providing fewer quantities of electricity to isolated areas of a nation in order to safeguard the overall power infrastructure.
Rudá Pellini, president of Arthur Mining, stated that while Brazil is currently experiencing power rationing, he does not see the addition of Bitcoin miners as a threat to the country’s energy supply:
“One of the primary issues in Brazil’s energy debate is transmission. We have a significant energy generating surplus in the nation, and it is feasible to encourage more investment in clean energy development.”
Kazakhstan’s electricity supply has been a persistent concern as the country has grown to become the world’s second-largest Bitcoin mining nation.
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