Brazil’s Oldest Bank Now Allows Tax Payments in Crypto
Banco do Brasil (BB), Brazil’s oldest bank, has announced it now allows tax payments in crypto through a partnership with Bitfy. The startup, which is funded by BB’s VC arm, will allow clients to use their cryptocurrency to pay and settle their tax bills.
This move is part of a larger initiative to help increase Brazil’s crypto adoption. It is also a welcome development for citizens who are looking to save money on their taxes.
Taxes
In a press release on February 11, Brazil?s Banco do Brasil announced that it has partnered with Bitfy to allow Brazilians to pay taxes in crypto. This move aims to bring convenience and ease to taxpayers and could change the banking landscape in Brazil.
The announcement noted that crypto users will experience a straightforward process, which displays their tax details along with the amount of reals needed to convert into the chosen cryptocurrency for payment. Residents will then access their information and pay by scanning a barcode, similar to the popular “boleto” payment method in Brazil.
Brazil is a very strict country when it comes to money entering and leaving the country. If you send a large sum of cash to Brazil, there is a high likelihood that your money will be seized by the government until you can provide documentation proving its legitimacy.
Fees
Brazilian bank Banco do Brasil now allows tax payments in crypto in a joint initiative with Bitfy, a Brazilian crypto firm. According to the announcement, residents can now pay their taxes using digital assets through a simple app.
This is a huge development for blockchain enthusiasts, since it will make it possible to pay taxes in the cryptocurrency of their choice. Moreover, it will allow clients to easily access the ecosystem of cryptoassets with national coverage.
However, crypto investors may be required to declare their trades in order to pay income taxes. The government requires investors who have traded more than 35,000 reals, or about $6,700, to declare their crypto transactions.
Convenience
Banco do Brasil, the oldest bank in the South American nation, has now allowed its clients to pay taxes in crypto. Through a partnership with payments firm Bitfy, which was funded by BB’s VC arm, customers will be able to scan a barcode and convert their cryptocurrency in reals into the Brazilian currency to settle a tax bill.
Unlike traditional banks, cryptocurrency transactions often occur instantly. This makes them more convenient for both parties.
In Brazil, the country’s taxation authority has recently established that crypto investors who trade like-kind crypto swaps should pay income tax. If they’re trading more than BRL 35,000 (approximately $6,711 US), they should also pay capital gain tax.
In addition to being convenient, using crypto for a tax payment also avoids the high foreign transaction fees and exchange rates that many traditional banks charge. This is especially beneficial for those who regularly export goods or services to other countries and want to minimize their business expenses.
Security
The Brazilian bank Banco do Brasil has partnered with the crypto exchange Bitfy to make it possible for residents in the country to pay their tax bills using cryptocurrency. The new service, which will be available on the Bitfy platform, is aimed at bringing convenience to consumers and helping them process their taxes with ease.
The bank’s statement explains that users will be able to see the exact amount of reals (Brazil’s official currency) that needs to be converted into the chosen cryptocurrency. Afterward, users will be able to scan a barcode to receive their tax payment.
In addition to crypto, the bank also offers other financial services, such as insurance, commercial loans, mortgages, asset management, and fund management. It has over 5,000 branches in Brazil and over 17 countries worldwide, making it the largest banking group in Latin America.
Source: Plato Data Intelligence: PlatoAiStream