Bank of Brazil, a.k.a Banco do Brasil, has announced that citizens can now pay their taxes with cryptocurrency. According to a post on their official website, Brazil’s oldest bank stated that this financial development is possible via a partnership with Bitfy, a popular blockchain solutions company with investment in BB’s Corporate Venture Capital Program (CVC).

Through this collaboration, Brazilians holding cryptocurrencies with Bitfy can now easily pay their taxes, fees, and governmental obligations using their assets. The mechanism behind this service is similar to customers paying for a ticket by capturing a barcode. Using the Bitfy app, taxpayers need only select their preferred cryptocurrency for payment and then scan a barcode before going on to confirm payment.

Bank Of Brazil Leading The Way

The introduction of this technology only stamps the Bank of Brazil’s position as a leading force in modern financial solutions. In addition to providing a convenient and easily accessible tax payment method to citizens, the successful adoption of this initiative could possibly transform the banking landscape. 

It is also worth noting that the Bank of Brazil’s contract with Bitfy also allows all partners – fintech, financial institutions – of the state-owned bank to extend similar tax payment options to their customers based on existing agreements between BB and certain public service agencies. 

Commenting on this fascinating development, the founder and CEO of Bitfy said, “the new digital economy is the catalyst for a future full of advantages. This partnership makes it possible to expand the use and access to the ecosystem of digital assets with national coverage and with the seal of security and reliability of Banco do Brasil.”

Interestingly, the Bank of Brazil is popular for its friendly involvement in the crypto space. In April 2021, BB became the first state-owned bank in Brazil to offer its customers exposure to a crypto exchange-traded fund (ETF). 

Cryptocurrency In Brazil

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

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

Current Total Crypto Market Cap Valued At $971.47 Billion | Source: TOTAL Chart on TradingView.com.

Under these new regulations, the Brazilian government legitimized cryptocurrency as a means of payment or investment asset within the Latin American nation. 

Although the bill does not confer on any cryptocurrency the status of a “legal tender”, the mere recognition of these digital assets by the country’s law will significantly spur adoption to higher heights.

In addition to Brazil’s government, several financial institutions like the Bank of Brazil have shown a high interest in cryptocurrency in recent years. In fact, it is noted that Brazilian banking firms offer the highest number of ETFs in Latin America.