The Bank of Brazil Now Allows Citizens to Pay Taxes with Crypto

Brazil seems to be leading the way in integrating cryptocurrencies into state payments.

The Bank of Brazil Now Allows Citizens to Pay Taxes with Crypto

Brazilian citizens are now able to pay their taxes using cryptocurrency by the Bank of Brazil, also known as Banco do Brasil. This financial development is possible through BB's partnership with Bitfy, a popular blockchain solutions company that has invested in its Corporate Venture Capital Program (CVC).

BB's contract with Bitfy allows all partners - fintech firms and financial institutions - of the state-owned bank to offer similar tax payment options to their customers based on existing agreements between the bank and certain public service agencies.

According to Bitfy's founder and CEO, "the new digital economy is the catalyst for a future full of advantages. Through this partnership, Banco do Brasil will be able to provide national coverage and an assurance of security and reliability to the ecosystem of digital assets.”

In an interesting development, the Bank of Brazil is widely recognized for its friendly involvement in the crypto space. As of April 2021, BB became the first state-owned bank in Brazil to offer its customers exposure to crypto exchange-traded funds (ETFs).

With regulations and policies aimed at encouraging the adoption of cryptocurrency and other digital assets among its citizens, the Federative Republic of Brazil is considered one of the most crypto-friendly nations in the world.

Jair Bolsonaro, the Brazilian president, signed a bill in December that provides a comprehensive framework for the use and trading of cryptocurrency within the country.

The Brazilian government has legitimized cryptocurrency as a means of payment or an investment asset within its borders.

The bill does not grant any cryptocurrency the status of "legal tender," but the mere recognition of these digital assets by the legal system will significantly enhance adoption.

Furthermore, several financial institutions such as the Bank of Brazil have shown a high level of interest in cryptocurrency in recent years. In fact, there are more ETFs available in Latin America from Brazilian banking firms than from any other country.

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