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Brazil’s Oldest Bank Takes a Leap into the Future with Crypto Tax Payment Options

2 mins
Updated by Ali M.
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In Brief

  • Brazil's oldest bank, Banco do Brasil, will allow residents to pay their taxes with crypto.
  • The bank said the initiative would bring more conveniency for its users.
  • The Brazilian government has made several pro-crypto moves in recent times.
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Banco do Brasil, the oldest bank in Brazil, has announced a major step forward in the world of digital assets. The bank has partnered with Brazil-based crypto 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 the “new financial technologies.” It embraces modern solutions and provides users access to the latest financial technologies. The bank’s adoption of crypto for tax payments will bring greater convenience for users and expand options for the authorities collecting taxes.

Fueling Crypto Adoption

According to Lucas Schoch, CEO of Bitfy, “The new digital economy is a 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 a national scope.”

The process of paying taxes with crypto is straightforward, with the user selecting the crypto asset they wish to pay with. The conversion to the Brazilian real, the national currency, happens instantly. Users can access their tax information by scanning a barcode or entering their tax number and 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 several cryptos as legal payment methods, though it does not recognize Bitcoin as a legal tender. It also established a licensing regime for crypto companies, stipulated crypto-related crimes, and regulated transactions. The law is set to become effective in June 2023.

One Step Ahead

Brazil’s number of crypto users has been growing, with the country ranked seventh on Chainalysis’ 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.

The pro-crypto moves made by the Brazilian government have recently earned praise from Ripple CEO Brad Garlinghouse, who praised the government for providing “leadership” and “clarity” for the crypto industry.

“Stepping back 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 energizing,” said Garlinghouse.

Banco do Brasil’s partnership with Bitfy marks a major milestone in the adoption of cryptocurrencies in Brazil and further cements the country’s position as a leader in the crypto industry. The bank’s commitment to providing its customers with access to the latest financial technologies is a positive step for the bank and the country.

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Oluwapelumi Adejumo
Oluwapelumi believes Bitcoin and blockchain technology have the potential to change the world for the better. He is an avid reader and began writing about crypto in 2020.