The move will simplify Brazilian tax arrears payments and "access" to the digital asset market.
In December 2022, Brazil passed legislation establishing a framework for domestic cryptocurrency use.
To pay their tax arrears, while also facilitating easier "access" to the ecosystem of digital assets.
A significant Brazilian bank is now offering a novel and useful choice for taxpayers to pay their taxes using cryptocurrency.
It is now "possible" for Brazilian taxpayers to pay their tax bill with bitcoin, according to Banco do Brasil of Brazil, which announced this on February 11 in partnership with the Brazilian cryptocurrency firm Bitfy.
Brazilians can use it if they have cryptocurrency in Bitfy's custody; this business will act as the "collection partner" for the primary Brazilian bank. In addition to the convenience it provides, it was noted that it may "expand" access to and usage of the ecosystem for digital assets with "national coverage" and the assurance that a reputable bank is safeguarding customers.
Bitfy's founder and CEO, Lucas Schoch, stated that the "new digital economy" is igniting "a future full with benefits."
According to the statement, paying for the bill with a cryptocurrency would be a simple process, with tax information and the amount of reals—the Brazilian real, which must be converted into the preferred cryptocurrency—displayed alongside it.
Taxpayers will get their tax bill by scanning a barcode, much like how they pay for a "boleto," or ticket, a typical payment method in Brazil. Brazil may strengthen its status as an economic superpower as a result of the 2024 CBDC decision. After Rio de Janeiro, Brazil, started accepting bitcoin as a form of tax payment in October 2022, this step was taken.
Brazil enacted legislation in December 2022 creating a regulatory framework for the use of cryptocurrencies domestically.
Most likely, the bill will go into effect in June of this year.
Previously, in May 2022, Brazilians were notified that taxes will be owed on transactions involving like-kind cryptocurrencies, such as the exchange of Bitcoin $21,980 for ETH $1,540. However, not all bitcoin dealers in Brazil are required to reveal their trades. According to the authority, only investors who transact in cryptocurrencies worth more than 35,000 reals ($6,711) are subject to paying income tax.