The oldest bank in Brazil enables people to pay taxes using cryptocurrency

The measure will make it easier for Brazilian taxpayers to fulfil their tax obligations while boosting “access” to the ecosystem of digital assets.

A major Brazilian bank is introducing a new and quick way for taxpayers to repay their obligations using cryptocurrency.

According to a statement issued by Banco do Brasil on February 11, it is now “possible” for Brazilian taxpayers to pay their tax bill using cryptocurrency as part of a collaborative initiative with Bitfy.

It is accessible to Brazilians whose crypto assets are held by Bitfy, which will serve as the big Brazilian bank’s “collection partner.”

It said that in addition to the ease it provides to clients, it may “extend” the usage and access to the digital asset ecosystem with “national coverage” while providing consumers with the security of a respected bank.

Bitfy’s creator and CEO, Lucas Schoch, stated that the “new digital economy is a catalyst for a prosperous future.”

The announcement said that crypto users will encounter a basic procedure, with tax data and the number of Brazilian reals, the country’s official currency, to be changed into the selected cryptocurrency.

Taxpayers would access their tax bill by scanning a barcode, similar to how they pay for a “boleto” (ticket) in Brazil, a common payment method.

This action follows the Brazilian city of Rio de Janeiro’s October 2022 acceptance of cryptocurrency as tax payments.

In December 2022, Brazil enacted a legislative framework that authorizes the use of cryptocurrencies as a form of payment inside the nation.

In all likelihood, the bill will go into force in June of this year. Prior to May 2022, Brazilian residents were informed that they will be forced to pay taxes on like-kind crypto exchanges.

However, not all Brazilian crypto investors are required to report their transactions. Only investors who trade more than 35,000 Brazilian reals (about $6,711) in cryptocurrencies are required to pay income tax.

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