- Brazil’s new bill proposes allowing workers to receive up to 50% of their salaries in Bitcoin, promoting crypto adoption.
- If passed, the legislation could attract foreign investment and strengthen Brazil’s role in the digital asset market.
Brazil is taking another step toward cryptocurrency adoption with a new bill proposing salary payments in Bitcoin. The legislation, introduced in the Brazilian National Congress, seeks to allow employees to receive up to 50% of their wages in digital assets.
Former federal deputy Luiz Phillipe of Orleans-Braganza submitted the bill, emphasizing flexibility for workers and businesses. If passed, this move could position Brazil as a global leader in digital asset integration.
Brazil Considers Bitcoin Salary Payments
Former federal deputy Luiz Phillipe of Orleans-Braganza has submitted a bill to the Brazilian National Congress, proposing Bitcoin as a legal payment method for salaries. According to Livecoins, Phillipe’s legislation aims to allow workers to receive up to 50% of their wages and labor entitlements in cryptocurrency.
The bill does not mandate Bitcoin payments but offers a legal framework for those interested. Employees who agree with their employers can opt for crypto payments and revert to traditional currency if desired. However, the law would require at least half of the wages to remain in Brazilian real (R$), ensuring continued fiat currency circulation.
Under the proposal, freelancers, expatriates, and self-employed workers would not be subject to the 50% fiat requirement, as the Brazilian Central Bank oversees this aspect. The bill must pass through the Chamber of Deputies and secure majority approval before reaching the Federal Senate for final consideration.
Enhancing Brazil’s Digital Asset Competitiveness
Phillipe emphasized that the bill could position Brazil as a global leader in digital asset adoption. By offering more options for salary payments, the country could attract foreign technology investments. Additionally, it would provide workers with greater autonomy in managing their earnings.
The bill reflects Brazil’s ongoing efforts to create a crypto-friendly environment. Regulatory measures have already encouraged major exchanges like Binance to obtain broker licenses in the country. If passed, the legislation could further legitimize digital asset transactions across industries, strengthening Brazil’s role in the blockchain sector.
Brazil is not the first country to consider Bitcoin salaries. In 2021, an Argentine lawmaker introduced a similar bill, and a United Arab Emirates (UAE) court recently recognized Bitcoin as a legal salary payment method. These developments indicate the growing global acceptance of cryptocurrency-based compensation.
Crypto Integration in Brazil’s Economic Policies
Beyond salary payments, Brazil is reportedly integrating blockchain technology into broader economic strategies. The nation prioritizes crypto-based solutions for trade within the BRICS alliance, including Saudi Arabia, Egypt, the UAE, Ethiopia, Iran, and Indonesia. Brazil aims to enhance cross-border trade efficiency by leveraging blockchain for financial transactions.
Stablecoins pegged to fiat currencies are already widely used for international transactions, especially in emerging markets. Brazil’s central bank is testing Drex, a tokenized financial system designed to modernize financial infrastructure. This initiative could serve as a model for other BRICS nations seeking alternatives to traditional banking intermediaries.
Additionally, Brazil’s instant payment system Pix may be integrated into a larger BRICS financial network. While this could streamline transactions, it raises questions about regulatory oversight and sovereignty. The Brazilian government is expected to navigate these complexities throughout the year as it balances innovation with financial regulations.
As previously mentioned in our report, Brazil’s securities regulator has approved the first spot XRP exchange-traded fund (ETF), leading to a surge in XRP’s market value. Meanwhile, Bybit, the world’s second-largest cryptocurrency exchange by trading volume, has launched Bybit Pay in Brazil. The payment solution integrates with Pix, allowing seamless transactions in fiat and cryptocurrency.
Brazil’s growing focus on digital currencies suggests continued advancements in crypto adoption. If the Bitcoin salary bill passes, it could set a precedent for other nations considering similar financial reforms.
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