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Bank of Brazil Allows Tax Payments in Crypto

Banco do Brasil, Brazil's oldest bank announced it would allow citizens to pay cryptocurrency taxes. The bank is partnering with Bitfy, a blockchain solutions firm with investment in Banco do Brasil's Corporate Venture Capital Program.

Banco do Brasil store
Banco do Brasil store

Bitfy Enables Tax Payments with Crypto

Through the partnership, citizens can pay their taxes and governmental obligations using their cryptocurrencies held with Bitfy. The process is as easy as scanning a barcode with the Bitfy app and confirming payment. This new payment method is a step forward for Banco do Brasil as a leader in modern financial solutions.

Brazil's Friendly Crypto Landscape

The Bank of Brazil's contract with Bitfy enables all its partners to offer similar tax payment options to their customers. The nation is considered one of the most crypto-friendly countries in the world, with regulations and policies aimed at boosting cryptocurrency adoption. Brazilian President Jair Bolsonaro signed a bill that provides a regulatory framework for cryptocurrency use and trading. The bill recognizes cryptocurrency as a payment or investment asset, although it doesn't confer " legal tender status."

Financial institutions in Brazil, including Banco, do Brasil, have shown a high interest in cryptocurrency. Brazilian banking firms offer the highest number of ETFs in Latin America.