The Bank of Brazil, aka Banco do Brasil, has announced that citizens can now pay taxes with cryptocurrency. According to a post on its official website, the oldest bank in Brazil stated that this financial development was made possible through a partnership with Bitfy, a popular blockchain solution company with an investment in BB’s Corporate Venture Capital (CVC) Program.
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 tickets by taking a barcode. Using the Bitfy app, taxpayers only need to select their preferred cryptocurrency to pay and then scan the barcode before confirming the payment.
Bank of Brazil Leading The Way
The introduction of this technology only stamps the Bank of Brazil’s position as a leading force in modern financial solutions. In addition to providing citizens with a convenient and easily accessible method of tax payment, the successful adoption of this initiative is likely to transform the banking landscape.
It is also worth noting that the contract of the Bank of Brazil with Bitfy also allows all partners – fintech, financial institutions – state-owned banks to extend the same tax payment option to customers based on the existing agreement between BB and certain public service institutions.
Commenting on this interesting development, the founder and CEO of Bitfy said, “tThe new digital economy is the catalyst for a future full of advantages. 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 known for its friendly involvement in the crypto space. In April 2021, BB became the first state-owned bank in Brazil to offer customers and crypto exchange trading funds. (ETFs).
Cryptocurrency in Brazil
The Federative Republic of Brazil is considered one of the most crypto-friendly countries in the world, with regulations and policies aimed at promoting the adoption of cryptocurrency and other digital assets among its citizens.
Last December, Brazilian President Jair Bolsonaro signed a bill that provides a comprehensive regulatory framework for the use and trade of cryptocurrencies in the country.
Current Total Crypto Market Capitalization is $971.47 Billion | Source: TOTAL chart on TradingView.com.
In this new regulation, the Brazilian government legalizes cryptocurrency as a means of payment or an investment asset in the Latin American country.
Although the bill does not grant “legal tender” status to any cryptocurrency, the recognition of these digital assets under the country’s laws will push adoption to a higher level.
In addition to the Brazilian government, some financial institutions like the Bank of Brazil have shown a high interest in cryptocurrency in recent years. In fact, it is noted that Brazilian banking companies offer the highest number of ETFs in Latin America.
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