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Brazil’s oldest bank, Banco do Brazil, or Bank of Brazil will now allow citizens to pay their tax bills using cryptocurrencies. The Bank is making this initiative possible in collaboration with Brazilian-based crypto firm Bifty.
According to a statement by the Bank of Brazil, Brazilian taxpayers can now use cryptocurrencies to pay their taxes, fees, and governmental obligations, thanks to a joint initiative with Bifty. The statement said the feature is available to Brazilians with cryptocurrencies under the custody of Bifty, who will act as a “collection partner” for the bank.
Aside from being convenient for Brazilian taxpayers, the initiative could “expand” the use of access to the crypto space with “national coverage” while having a reputable bank providing customers with consumer protection. Lucan Schock, Bifty’s founder and CEO, said:
The 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.
According to reports, the introduction of the new tax initiative marks the Bank of Brazil’s position as a “leading force in modern financial solutions.” The venture also allows all partners – fintech, financial institutions – of the Bank to extend similar tax payment options to their customers based on existing agreements between the Bank and public service agencies.
Brazil’s Stance on Cryptocurrencies
Brazil has been active in the crypto space of late. In December, outgoing President Jair Bolsonaro signed a bill that would see cryptocurrencies as a payment method made legal. The new bill established a fraud crime involving digital currencies that will come with a penalty of between four and six years in prison and a fine. The bill also establishes a “virtual service provider” license, which digital asset firms, including exchanges and trading intermediaries, would require. A few days after the country’s crypto bill was signed, the Brazilian Securities and Exchange Commission approved investment funds to hold crypto assets.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.