Crypto adoption in Brazil has also surged since the beginning of this year. Residents of the nations are also mining crypto assets like Ethereum as their secondary source income amid losing their jobs due to COVID-19 lockdowns.Recently, local news-outlets have published that the nation’s Congress is set to look at several proposals based on digital assets. Notably, as a part of such proposals, the central bank of Brazil was suggested as the main regulator to oversee the digital market. However, the Brazilian Securities Commission (CVM) could also overlook certain aspects of the digital ecosystem.
Brazil seeks to spare digital assets mining tax
In the current scenario, Brazil views crypto assets like Bitcoin and Ethereum as commodities like precious metals and oil. According to the report published by the local news outlets, it has been signaled that the nation is looking into digital assets to regard them as currencies.
Besides, it has been observed that a major change might come from the crypto mining industry if the proposals pass that being looked at by the Brazilian Congress. According to the proposals, the government would spare tax on imports of cryptocurrency mining rigs with mega processing capacity. Moreover, there is also a condition for zero rate exemption if the digital assets miners carry their operations through renewable energy resources.
Brazil seems planning to attract crypto miners
According to Ra Nasser, the CEO of Arthur Mining, if the zero rate law is passed, the nation would become the crypto mining hub of the world. Nasser further explained that with the demand for numerous energy companies they have in Brazil, the cost is yet too high. And if the costs decline to zero, the industry there would have a much more reliable and crypto-friendly jurisdiction. Ultimately, Brazil will then have a much more solid workforce in comparison to Paraguay and Argentina.
Brazilian banks are diving into the digital ecosystem
In recent times, Latin American eCommerce giant MercadoPago has unveiled plans to offer crypto investments to its Brazilian clients. According to Tulio Oliveira, the vice president of MercadoPago, the wider roll-out is expected shortly after a smaller pilot that was launched last month.
Furthermore, a Brazilian congressman Luizão Goulart, had also proposed an ordinance to allow crypto payments to employees across the nation. Goulart further argued cryptocurrency payments could be used to harness the benefits of the technology and bring the advantages of decentralization.