LBank celebrates Brazil’s move to allow residents to pay taxes with crypto

Banco do Brasil (BB), Brazil’s largest public bank, partly owned by the Brazilian government, released a statement last Friday announcing that Brazilian taxpayers will now be able to settle their dues using crypto. Services are provided by Bitfy, a Brazil-based cryptocurrency payment processor, which exchanges paid cryptocurrencies for Brazilian reals in real-time. 

“Brazil is seeing wider crypto adoption, both institutionally and with its number of crypto users. It’s exciting to see this South American nation becoming one of the most crypto-friendly countries in the world and a leading force in the industry. This is a landmark move from BB, taking it ahead of the game,” LBank CMO Kaia Wong shared.

In October 2022, Rio de Janeiro similarly allowed taxes to be paid using crypto. Two months later, Brazilian president Jair Bolsonaro signed a crypto regulation bill, making it legal to use cryptocurrency as a payment method in the country. The law will likely come into effect in June 2023. 

This new enablement gives taxpayers a convenient way to settle tax liabilities and also gain access to a digital asset ecosystem, all under the “seal of security and reliability of BB”. “The new digital economy is a catalyst for a future full of advantages,” Lucas Schoch, Bitfy’s founder and CEO, commented.

The services are available to customers with crypto under Bitby custody.  Additionally, Bitfy clients – fintech, and financial institutions – are allowed to provide similar tax payment options to their customers based on existing agreements between BB and various public service agencies. Bitfy, who acts as a “collection partner” for BB, received an investment from BB’s Corporate Venture Capital Program in November 2022.

By scanning a barcode or inputting a number, taxpayers will be able to access their tax bills and pay taxes. Crypto and Brazilian real prices will be shown side-by-side when paying. It will be processed instantaneously by Bitfly, exchanging cryptocurrencies for Brazilian reals and transferring to institutions.

Disclaimer: This is a paid post and should not be treated as news/advice.