Brazilians will now be able to pay part of their state taxes using cryptocurrencies. Banco do Brasil, a mixed ownership bank, is launching the option to pay a set of taxes with cryptocurrencies, using Bitfy, a Brazilian cryptocurrency startup, as a payment processor, exchanging the paid cryptocurrencies for Brazilian reais on the fly.
Brazilians will have the opportunity to pay taxes with cryptocurrencies using Banco Do Brasil
Cryptocurrencies are making progress when it comes to their usability in Brazil. Banco do Brasil, one of the oldest banks in Brazil, and partly owned by the Brazilian government, has aggregate the option for Brazilians to pay state taxes with cryptocurrencies using its platform. The bank is using the services of Bitfy, a cryptocurrency payment 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 streamline public processes, bringing more transparency and credibility to institutions. Lucas Schoch, CEO and founder of Bitfy, fixed:
We will promote the adoption of the new defi economy, developing the necessary infrastructure to increase autonomy and democratize the use and access to the ecosystem of digital assets throughout Brazil.
bitfy, what received an investment by Banco do Brasil in November that seeks to integrate tokenization and payment services into its portfolio, also announced the line of cryptocurrencies supported for these payments. Among these are bitcoin, ethereum, decentraland, chainlink, algorand, solana, ripple, polkadot, avalanche, dash and binance coin, which must be deposited in the application’s wallet to be used.
payment processes
This development is possible thanks to the agreements that Bitfy has made with government institutions, expanding the reach of its tax payment tools nationwide. The tax payment process with this tool will include entering a payment number or scanning a barcode for payment, which will be processed by Bitfly immediately, exchanging cryptocurrencies for Brazilian reais and transferring them to institutions.
The announcement brings a new use for cryptocurrencies in the country, after the recent enactment 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 piece of the crypto payments market in the country, having announced the launch of a prepaid crypto card in January, as part of its expansion drive in Latam.
What do you think of Banco do Brasil and the option it gives Brazilians to pay taxes with cryptocurrencies? Tell us in the comments section below.
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