Brazil is examining the possibility of not levying taxes on mining green bitcoin

A new proposal from the Brazilian Congress calls for a tax exemption for both the import of cryptocurrency mining equipment and any mining that uses renewable energy sources.

A report by the Brazilian media Seudinheiro on December 4th explains this A number of new proposals from Brazilian lawmakers could reduce criticism of cryptocurrencies in the largest country in South America.

Congress also heard a proposal to view cryptocurrencies as currencies rather than goods.. If this proposal is approved, crypto exchanges will be able to offer financial services and lend to Brazilian residents.

Brazil is examining the possibility of not levying taxes on mining green bitcoin
Brazil is examining the possibility of not levying taxes on mining green bitcoin

Senator Iraj¡ Silvestre Filho presented the three proposals to Congress. It is currently unclear how much support the proposals have in lawmakers, but there is a lot of support from the Brazilian cryptocurrency community.

Ray Nasser, CEO of Arthur Mining, said that If Brazil lets through the tax exemption for cryptocurrency miners, it could become a global “mining mecca”.

On the condition that cryptocurrencies become legal currency, the Brazilian central bank would be authorized to issue central bank digital currency (CBDC).. That would add Brazil to nine other countries or jurisdictions that are currently issuing CBDCs to their residents.

Brazil currently produces a little less than half of its electricity from renewable sources, according to the International Trade Administration. The costs per kilowatt hour are around 0.12 US dollars and are therefore roughly in the middle of the global range.

Taynaah Reis, CEO of Moeda, a Brazil-based blockchain finance company, told Cointelegraph:

â ???? Cryptocurrencies are growing rapidly in Brazil and regulators have been very proactive and protective in incentivizing mining and writing guidelines on best practices when large companies announced their plans to include cryptocurrencies.

Reis said that too Miners would have to register their equipment with the Brazilian government in order to control the ecosystem.

There are energy concerns in Brazil where energy rationing is becoming a reality. Electricity rationing is when small parts of a country receive less electricity to protect the general electricity network.

Rudè Pellini, President of Arthur Mining, said that Although Brazil is grappling with energy rationing, it does not see the arrival of bitcoin miners as a threat to energy supplies:

• One of the main problems with the energy issue in Brazil is transmission. We have a large surplus of energy production in the country and it is possible to encourage larger investments in clean energy production.

The power supply in Kazakhstan is a constant problem, which is the second country in the world where Bitcoin is mined.

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