Banco Do Brasil Introduces Paying Taxes Using Cryptocurrency

JAKARTA - A major bank in Brazil offers an easy and convenient option for taxpayers to pay off their bills using cryptocurrency.

According to a statement published by Brazilian bank Banco do Brasil on February 11, it is now “possible” for Brazilian taxpayers to pay their tax bills with crypto in a joint initiative with Brazilian crypto company Bitfy.

Available to Brazilians with crypto under the protection of Bitfy, which will serve as a collection partner for the major Brazilian bank.

The bank notes that in addition to the convenience it brings to customers, it can "expand" the use of and access to the digital asset ecosystem with "national coverage" while having the convenience of a trusted bank providing protection for consumers.

Lucas Schoch, founder and CEO of Bitfy, added that "the new digital economy is a catalyst for a rewarding future".

The statement states that crypto users will experience a simple process, with tax details displayed along with the number of reais, Brazil's official currency, which must be converted to the defined cryptocurrency to pay bills.

Taxpayers will access their tax invoice by scanning a bar code, similar to how they pay "boleto", a popular payment method in Brazil. This step was taken after the city of Rio de Janeiro in Brazil started accepting crypto as payment for taxes in October 2022.

In December 2022, Brazil passed a regulatory framework legalizing the use of cryptocurrency as a payment method within the country. The law will enter into force in June this year.

Brazilians were previously notified in May 2022 that they would have to pay taxes on trading in like-kind cryptocurrencies, for example, exchanging Bitcoin for Ether.

However, as Cointelegraph reports, not all crypto investors in Brazil need to declare their trades. The regulator stipulates that only investors who trade more than 35,000 reais (IDR 101.4 million) in crypto should pay income tax.