Brazil’s Congress Considers Bill To Make It A Bitcoin Mining Paradise

A Brazilian Senator, Irajá Silvestre Filhothe, has motioned to see Bitcoin mining firms operating in the country using renewable energy sources to operate tax-free. The senator also called for the removal of taxes on the importation of Bitcoin mining equipment and the government changing its classification of crypto to view them as currencies. A media company in Brazil, Seudinheiro, noted that accepting these proposals would allow crypto exchanges to perform services like banks.

Power Supply Concerns 

The International Trade Organization disclosed that the country currently supplies nearly half of its electricity from renewable sources. The pricing per kilowatt-hour at just over 10 cents places it at the bridge between cheap and expensive electricity globally. The CEO of blockchain company Moeda, Taynaah Reis, said that the government had continued to foster the industry’s growth and create policies to ensure fair play in the market.

The blockchain executive disclosed that the Brazilian government required all Bitcoin mining equipment to be registered. The registration of the equipment allowed the government to track the power consumption. The power supply is a pressing issue in Brazil. The government has been compelled to embrace strategies like rationing to maintain the system.

Previous Government Support And Stakeholders Perspective

The CEO of Arthur Mining, Ray Nasser, came out to say that the passing of the tax-exempt bill will make Brazil the Mecca of Mining. The cryptocurrency industry has continued to grow in Brazil. In November, the Federal Deputy of Brazil, Luizão Goulart, suggested that the government approve Bitcoin as a means of payment for labor in the country. The congressman made it clear that it would be the workers’ choice of receiving payment in crypto or fiat.

The Brazilian government has been a supporter of cryptocurrencies for a while. In October, the Brazilian central bank disclosed that its citizens had made over $4 billion investments in cryptocurrencies since the beginning of the year. The report showed that in May, the people of Brazil had invested over $750 million in crypto. Those values have continued to drop but remain higher than seen at the beginning of the year.

Crypto Support In The Works For Mercado

Last week, the largest e-commerce platform in South America, Mercado Libre, announced that the company would incorporate Paxos’ infrastructure to allow Brazilian customers to operate with cryptocurrencies. Mercado Libre revealed that later this month, it would add features to its digital wallet, Mercado Pago, that will let users hold tokens like Bitcoin, Ethereum, and USDP.  It added that transactions could not be less than a Brazilian real.

Paxos will be providing the framework for the trading of digital assets and custody services. The company had a similar arrangement with PayPal, launched late last year. Some pundits have hailed the partnership with PayPal as one of the catalysts for crypto adoption in the United States. Mercado Libre had disclosed that it had taken steps to factor in possible regulatory concerns. However, the company is yet to disclose a date for the launch of the service this month.