The bank said the initiative would bring more convenience for its users. The Brazilian government has made several moves in favor of cryptocurrencies in recent times.
Banco do Brasil, the oldest bank in Brazil, has announced a big step forward in the world of digital assets. The bank has partnered with Brazil-based cryptocurrency exchange Bitfy to allow residents to pay their taxes using digital assets as a payment option.
This move places Banco do Brasil at the forefront of “new financial technologies”. It embraces modern solutions and gives users access to the latest financial technologies. The adoption of crypto by the bank for the payment of taxes will provide greater convenience for users, and it will expand the options for tax authorities.
Driving Cryptocurrency Adoption
According to Lucas Schoch, CEO of Bitfy, “The new digital economy is a catalyst for a future full of advantages. This alliance allows to expand the use and access to the ecosystem of digital assets with a national scope”.
The process of paying taxes with cryptocurrencies is simple, since users select the asset with which they wish to pay. Conversion to the Brazilian real, the national currency, happens instantly.
Users can access their tax information by scanning a barcode or entering their tax identification number, and they can validate the data before confirming payments.
Brazil is becoming a more crypto-friendly nation, as in December 2022, the country’s president signed a bill that legalized the use of cryptocurrencies.
The law considers various cryptos as legal payment methods, although it does not recognize Bitcoin as legal tender. It also established a licensing regime for cryptocurrency companies, stipulated cryptocurrency-related crimes, and regulated transactions. The law will enter into force in June 2023.
A Step Forward
The number of cryptocurrency users from Brazil has been on the rise, with the country ranking seventh in Chainalysis’s 2022 Global Crypto Adoption Index. Institutional adoption of cryptocurrencies has also increased, with more than 12,000 companies declaring that they own crypto assets as of August 2022.
Pro-crypto moves by the Brazilian government recently drew praise from Ripple CEO Brad Garlinghouse, who praised the government for providing “leadership” and “clarity” to the crypto industry.
“Switching away for a moment from what’s happening in the US, just in the last few weeks, the number of positive (or at least headed in the direction of CLARITY) global regulatory developments is encouraging,” Garlinghouse said.
Ripple CEO further tweeted that “The list goes on (Brazil’s new legislative framework etc) Note the commonalities – these regulators are providing leadership and doing the work that we are desperately missing in the US – unsurprisingly, this is where companies like Ripple are growing!”
Banco do Brasil’s partnership with Bitfy marks an important milestone in the adoption of cryptocurrencies in Brazil, and it further cements the country’s position as a leader in the cryptocurrency industry. The bank’s commitment to provide its clients with access to the latest financial technologies is a positive step for the bank and the country.
By Audy Castaneda
