The Oldest Bank In Brazil Now Allows Users To Pay Taxes Via Crypto

A prominent Brazilian bank has announced a new and convenient way for taxpayers to pay their taxes with crypto. As per a statement released on February 11th by Brazilian bank Banco do Brasil, it is now possible for local taxpayers to pay their tax bill with crypto as part of a collaborative effort with Bitfy, a crypto firm based in Brazil.

As such, the new service is available to Brazilians who have crypto stored with Bitfy, which shall act as a sort of collection partner for Banco do Brasil. In addition to the ease the new serivce provides customers, it also has the potential to expand the use of and subsequent access to the overall digital asset ecosystem with national coverage alongside the dependable security of a bank.

This decision was made following Rio de Janeiro reportedly accepting crypto as tax payments back in October 2022. Brazil passed a regulatory framework in December 2022 which legalizes the usage of crypto as a viable payment method. The new law is expected to go into effect in June 2023. Finally, only investors who trade over 35,000 Brazilian Reals in crypto are required to pay income tax.