Brazilians Will Be Able to Pay Taxes With Crypto

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 of paying a set of taxes with crypto, using Bitfy, a Brazilian cryptocurrency startup, as a payment processor, exchanging the cryptocurrencies paid for Brazilian reals on the fly.

Cryptocurrencies are making inroads when it comes to their usability in Brazil. Banco do Brazil, one of the oldest banks in Brazil, and in part owned by the Brazilian government, has added the option for Brazilians to pay state taxes with cryptocurrencies using its platform. The bank is using the services of Bitfy, a cryptocurrency payments processor, as a bridge to complete these payments, according to reports.

The company advertises its solution as the first of its kind, stating that the adoption of blockchain technology will optimize public processes, bringing more transparency and credibility to institutions. Lucas Schoch, CEO and founder of Bitfy, stated:

We will drive the adoption of the new defi economy, developing the necessary infrastructure to increase autonomy and democratize the use and access to the digital asset ecosystem throughout Brazil.

Bitfy, which received an investment from Banco do Brazil in November looking to integrate tokenization and payment services in its portfolio, also announced the lineup of cryptocurrencies supported for these payments. Among these are bitcoin, ethereum, decentraland, chainlink, algorand, solana, ripple, polkadot, avalanche, dash, and binance coin, which will have to be deposited on the app wallet to be used.

This development is possible due to agreements that Bitfy has made with government institutions, expanding the reach of its tax payment tools nationwide. The process of paying taxes with this tool will include the input of a payment number or the scan of a barcode for the payment, which will be processed by Bitfly immediately, exchanging cryptocurrencies for Brazilian reals and transferring them to the institutions.

The announcement brings a new use for cryptocurrencies in the country, after the recent sanction of a cryptocurrency law that opens the door for the inclusion of these assets in more financial activities in Brazil.

Binance is also working to get 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 in Latam.

What do you think about Banco do Brazil and the option it gives Brazilians of paying taxes with cryptocurrency? Tell us in the comments section below