Brazilians will now be able to pay part of their state taxes using cryptocurrencies. Banco do Brazil, a mixed-ownership bank, is launching the option to pay a bunch of taxes in cryptocurrency, using Bitfy, a Brazilian cryptocurrency startup, as a payment processor, quickly exchanging paid cryptocurrencies for Brazilian reals.
Brazilians will have the opportunity to pay taxes with cryptocurrency using Banco Do Brazil
Cryptocurrency is making headway when it comes to usability in Brazil. Banco do Brazil, one of the oldest banks in Brazil, partly owned by the Brazilian government, has added the option for Brazilians to pay state taxes in cryptocurrency using its platform. The bank uses the services of Bitfy, a cryptocurrency payment processor, as a bridge to complete these payments, according to the reports.
The company announces its solution as the first of its kind, stating that the adoption of blockchain technology will improve overall operations, providing more transparency and credibility to organizations. Lukas Schusch, CEO and Founder of Bitfy, said:
We will drive the adoption of the new disruptive economy, and develop the infrastructure needed to increase autonomy and democratize the use and access of the digital asset ecosystem across Brazil.
Bitfy, which received an investment from Banco do Brazil in November looking to integrate tokenization and payment services into its wallet, also announced the range of cryptocurrencies supported for these payments. Among these are Bitcoin, Ethereum, Decentralized, Linkchain, Algorand, Solana, Ripple, Polkadot, Avalanche, Endash, and Binance Coin, which must be deposited into the app wallet to be used.
This development is possible due to the agreements Bitfy has with government institutions, to expand the range of tax payment tools nationwide. The process of paying taxes with this tool will involve entering a payment number or scanning a payment barcode, which will be processed by Bitfly instantly, exchanging cryptocurrencies into Brazilian reals and transferring them to the institutions.
The announcement brings a new use of cryptocurrency in the country, following the recent sanction of a cryptocurrency law that opens the door for these assets to be included in more financial activities in Brazil.
Binance is also working to grab 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 into Latam.
What do you think about Banco do Brazil and the option it gives Brazilians to pay taxes using cryptocurrency? Tell us in the comments section below
Image credits: shutterstock, pixabay, wikicommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.