By Michael Scott
The ancient bank in Brazil, Banco do Brasil, partners with a digital firm Bitfy to develop a crypto-friendly taxation system. A statement by Banco on February 11 revealed that the partnership aims to integrate distinctive innovations to boost customer experiences. The joint efforts will necessitate Bitfy to oversee the operations of banking services.
Banco Partners with Bitfy
Similar to other countries pursuing crypto adoption, Brazil legalized Bitcoin as a payment method last December. Brazil seeks to regulate all crypto exchanges and lenders to uphold secure and reliable transactions.
Despite the crypto regulations, private and public entities have demonstrated interest in digital assets.
On February 11, the oldest financial institution in Brazil, Banco, partnered with a leading crypto operator in Latin America, Bitfy.
According to the partnership agreement, Bitfy was tasked to improve the bank’s taxing system and payment methods.
Before, new business partners had engaged in a venture capital (VC) program. Bitfy was among the investors who deposited a considerable amount on the corporate VChosted by Banco.
The bank leads other financial institutions to integrate crypto and blockchain technologies into banking systems in Brazil.
Changes in Taxation Process
The partnership will introduce new features to the taxation process. The customers are provided with alternative tax payment options. The user is requested to select the crypto asset available on the taxation portal.
A new element on the system requires the users to record the barcode of the crypto asset selected.
Alternatively, the users can use the sequence code to execute the transaction. The user is requested to verify the information he provided during the initial tax payment process.
After verification, the tax payment is processed, and transaction charges might be applicable. The bank revealed plans to adopt the current crypto prices to compute the conversion charges.
A statement by Bitfy’s chief executive Lucas Schoch proclaimed that the partnership would introduce the first digital economy.
Schoch revealed his commitment to lobbying for crypto adoption and sensitizing investors on emerging digital economies.
In addition, the partnership will reduce crypto tax evasion in Brazil. A report from CoinLedger’s Tally illustrates that 31% of crypto fans in the US are required to remit their tax reports to the Internal Revenue Service (IRS).