Latin American bank Banco do Brasil has formed a partnership with Brazilian crypto startup Bitfy, in an official statement. The bank stated that as a result of the partnership, customers will be able to pay their tax debt with cryptocurrency. Thanks to Bitfy, which Banco do Brasil describes as a “collection partner”, all Brazilian citizens will pay off their tax debt directly with crypto money. Bitfy founder Lucas Schoch gave the following words after the partnership announcement:
“Now that we have sealed this strategic partnership, Bitfy and Banco do Brasil, we will drive the adoption of the new DeFi economy, developing the necessary infrastructure to increase autonomy and democratize the use and access to the digital asset ecosystem throughout Brazil”
Schoch stated that in addition to the convenience provided to customers, this step will play an important role in the spread of cryptocurrencies. According to the announcement, taxpayers will not have any confusion when Bando do Brasil and Bitfy deal with the foreign exchange transaction of the tax paid.
There have been significant developments in crypto in the Latin American country in recent months. The government passed a new law in the last month of 2022 to legalize payments in crypto. Those who trade crypto over a certain amount ($6,000) are subject to tax. In the capital city of Rio, it became legal to pay taxes on cryptocurrencies as of October 2022.