Brazil may be the next in line to legalize salary payments in Bitcoin, after the National Congress received a bill pushing for the move. According to reports, Congress received a bill that will allow employees to take their salaries and other remunerations in Bitcoin and other digital assets.
The bill was authored and submitted by prominent politician Luiz Philippe of Orleans-Braganza. In the bill, he asked that the National Congress look into the idea of regulating the payment of salaries in digital assets. “Regulation of the payment of salaries, remunerations and labor benefits with the use of virtual assets,” an excerpt of the bill reads.
According to the usual mode of passing bills in Brazil, it will first undergo analysis within the Chamber of Deputies. If it is approved, with the majority in the Plenary, it will be sent to the Federal Senate for evaluation. According to Brazilian legislation, Law No. 14,478/2022, addresses Bitcoin and other digital assets as ‘virtual assets’, meaning that the new proposal will use the same terminology to regulate labor activities.
In the bill, Philippe mentioned that companies should provide detailed payment statements and offer financial education to workers who want to collect their salaries in digital assets. He added that they need to cover concepts like market volatility and transaction security. The project also ensures that labor and social security charges are calculated based on the total value of remuneration expressed in reais.
Brazilian National Congress to consider another pro-crypto law
According to local media Livecoins, the bill was submitted by Philippe to the National Congress on March 14, asking the lawmakers to effect a rule change. According to his proposal, workers should be able to collect at least 50% of their wages and other entitlements in Bitcoin and other digital assets if they choose.
Notably, the bill does not enforce Bitcoin acceptance but rather provides legal backing for residents working in the country who prefer exposure to the ever-rising technology. According to the bill, the payments in digital assets should happen after an agreement between the worker and the employer. This means that both parties can decide to terminate the use of the payment method at will.
An interesting part of the bill mentioned that 50% of the bill should remain in Brazilian real to sustain the utility of the country’s currency. However, according to the law being overseen by the Brazilian Central Bank, the bill will not apply to freelancers, expatriates, or self-employed workers. This might be mainly down to the fact that they are allowed to choose how they get paid for their services, with most of them often taking crypto.
Philippe backs the bill to enhance digital asset competitiveness
According to Philippe, the bill will help Brazil enhance its status as a global digital asset hub as countries across the globe continue to push for the adoption of the technology. He mentioned that another upside is that it will attract foreign investments in the country, giving employees the freedom to decide on what options they want to receive their labor rights.
Meanwhile, the proposal represents a broader friendly move toward digital assets in Brazil. The South American country prides itself for its clear regulatory framework that has provided a safe and secure environment for individuals and firms in the crypto space. For instance, popular crypto exchange Binance announced an expansion in Brazil earlier this year, becoming the first exchange to receive a broker license.
Notably, Brazil is not the first country to consider this approach, with an Argentina lawmaker introducing the same proposal back in 2021. According to the author of the bill, Jose Luis Ramon, the initiative would help employees preserve their purchasing power while increasing their financial independence.
“I presented a bill so that workers have the option of receiving their full or partial salary in Bitcoin or other crypto. The idea is that they can strengthen their autonomy and conserve the purchasing power of their remuneration,” he said at the time.
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