According to Brazil’s president Luiz Inácio Lula da Silva, developing countries should abandon the U.S. dollar and strengthen their own national currencies. During a speech at the New Development Bank in Shanghai, Lula expressed his nightly pondering: “Why do all countries have to base their trade on the dollar?”

Brazilian legislation does not presently include Cryptocurrency-specific tax rules. Nonetheless, the Brazilian tax authorities publish several Questions and Answers that make it clear that Cryptocurrencies must be reported on tax returns and that any profits made from selling them are taxable as capital gains.

BTG Pactual, a major Brazilian investment bank, has launched its own stablecoin called BTG Dol, which is pegged to the US dollar on a 1:1 ratio. The stablecoin is based on BTG Pactual's proprietary crypto technology platform, Mynt, and will allow holders to "dollarize" a part of their equity and interact between the traditional financial system and the new digital economy. Marcel Monteiro, Mynt's head of operations, said the bank trusts technology and will continue with its commitment to offering new innovative digital products and services. In 2021, BTG Pactual's Bitcoin 20 Multi-Market Investment Fund reportedly became one of the first Bitcoin funds launched in Brazil, with custody and other services provided by Gemini Custody and Gemini Fund Solutions.

Coinbase may be caught in the crypto regulatory crackdown in the U.S., but the company is finding plenty of friendly faces in Brazil.

Coinbase has announced that it is expanding its presence in Brazil by integrating Pix and partnering with Ebanx. Coinbase already exists in Brazil, with several initiatives launched in the past. The development helps the venture better accomplish its mission of making the crypto economy accessible to everyone in Brazil.

Numbers from the Brazilian tax authority indicate that the cryptocurrency market experienced a resurgence in January, with trading increasing more than 10% compared to December. Tether’s usdt is still the currency that moves the most volume, a reality related to OTC (over-the-counter) trades, according to market analysts.

One of the largest digital banks in Brazil, Nubank, has launched a loyalty program for its customers with its own crypto token Nucoin.

A tokenized version of the digital real, the Brazilian central bank digital currency (CBDC), has passed a public blockchain pilot test successfully. The test, which was carried out by Mercado Bitcoin, a local exchange, using the Stellar network, shows that the digital real token can be used in public blockchains following all compliance rules set by Brazilian laws.

Banco do Brasil (BB), Brazil’s largest public bank, partly owned by the Brazilian government, released a statement last Friday announcing that Brazilian taxpayers will now be able to settle their dues using crypto. Services are provided by Bitfy, a Brazil-based cryptocurrency payment processor, which exchanges paid cryptocurrencies for Brazilian reals in real-time. 

Brazil is making strides in developing its central bank digital currency (CBDC), and the design of its architecture. Roberto Campos Neto, president of the Central Bank of Brazil, recently detailed the advances that the institution has made in building the foundation for the operation of the proposed digital real currency.