Banco do Brasil, a major Brazilian bank, has announced a partnership with Brazilian crypto firm Bitfy that allows Brazilian taxpayers to pay their tax bills using cryptocurrencies. Bitfy will serve as the collection partner for Banco do Brasil and the option is available to those who hold cryptocurrencies with the firm.
This new payment method brings added convenience to customers and aims to increase the use and accessibility of digital assets with national coverage, all while being backed by a reputable bank for consumer protection. The CEO of Bitfy, Lucas Schoch, sees this as a catalyst for a future with many benefits in the “new digital economy.”
Taxpayers can access their bill by scanning a barcode and the payment process is straightforward, with the amount to be paid in reals and the equivalent in the chosen cryptocurrency clearly displayed. This development follows the city of Rio de Janeiro accepting cryptocurrencies as payment for taxes in October 2022 and the recent passing of a regulatory framework in December 2022 that legalizes the use of cryptocurrencies as a payment method in Brazil.
The law is expected to come into effect in June 2023. Brazil had previously stated in May 2022 that taxes on crypto trades are mandatory for those trading more than 35,000 reals (approximately $6,711) in cryptocurrency.
