A significant Brazilian bank is providing taxpayers with a fresh and practical way to pay their taxes using digital currency.

It is now "possible" for Brazilian taxpayers to pay their tax bill with cryptocurrency, according to a collaborative venture with Brazilian-based cryptocurrency business Bitfy, according to a statement released by Brazilian bank, Banco do Brasil on February 11.

Brazilians who have their cryptocurrency in the custody of Bitfy, which will serve as a "collection partner" for the main Brazilian bank, are eligible for it.

In addition to the ease it offers users, it was observed that it might "extend" access to and use of the digital asset ecosystem with "national coverage" and the security of knowing a respected bank is protecting consumers.

Lucas Schoch, Bitfy’s founder and CEO says "new digital economy is a catalyst for a future full of advantages"

It was said that the process for cryptocurrency users would be simple because the tax information would be provided and the quantity of Reais, the official currency of Brazil, would be translated into the desired cryptocurrency at the same time.

In a manner similar to how they pay "a boleto," which is a common way to pay in Brazil and means "ticket," taxpayers will view their tax bill by scanning a barcode.

This action follows Rio de Janeiro, a Brazilian city that began taking cryptocurrencies as tax payments in October 2022.

More recently in Dec. 2022, Brazil passed a regulatory framework that legalizes the use of cryptocurrencies as a payment method within the country.

More recently, in December 2022, Brazil approved legislation that makes it permissible to utilize cryptocurrencies as a form of payment there.

Later this year, most likely in June, the law will take effect.

Brazilian citizens were previously informed that starting in May 2022, taxes would be due on transactions involving like-kind cryptocurrencies, such as trading Bitcoin $21,810 for Ethereum $1,532.

However, only Brazilians who trade more than BRL 35,000 ($6,711 US) in cryptocurrencies are required to pay income tax, according to the agency, therefore not all cryptocurrency traders in Brazil are required to disclose their transactions.

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