Bank of Brazil Taps Bitfy to Offer Crypto Tax Payment Option

Brazilian taxpayers now have permission to settle their tax payments with cryptocurrencies. According to the Bank of Brazil or Banco do Brasil, there now exists an agreement with Brazilian-based crypto firm Bitfy to allow Brazilian taxpayers to offset their tax liabilities with digital assets as a payment option. Bitfy will serve as the Bank of Brazil’s collection partner for every such crypto transaction.

While this is believed to be an easy and convenient option, it is also speculated that it will contribute to the expansion of access to the crypto ecosystem in the region. Bank of Brazil now stands as one of the few organizations promoting the use of innovative and sophisticated technologies to provide financial solutions. The bank believes that this is its best option to receive taxes from the public sector.

“The service allows partners (financial institutions, fintechs, among others) to offer the payment solution for tax bills, fees and obligations to their customers, using the agreements signed by BB with entities and concessionaires of public services,” based on a published statement by Bank of Brazil.

Crypto Payment Adoption Expands 

Founder and Chief Executive Officer (CEO) of Bitfy Lucas Schoch reiterated “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.”

Notably, this crypto tax payment option is only available for Bitfy users for now. The Bank of Brazil likened the process of completing the crypto transaction to when a customer is trying to pay for a ticket with a barcode. Users will only need to select the cryptocurrency of choice and then scan the barcode. More importantly, this partnership with a respected traditional financial institution provides a certain assurance of customer protection. 

Crypto payment is gradually becoming a sensation in Latin America and its environment, and a handful of countries in the region are signing partnerships that will promote the technology.

Recently, leading crypto exchange Binance tapped financial payment giant Mastercard to roll out crypto prepaid cards in Brazil. Both entities had earlier introduced a similar payment option in Argentina.