Brazil Proposes a New Bill for Salary Payments in BTC

Key Takeaways:

• As the background, the bill introduced in Brazil is proposing that all companies could pay their employees in Bitcoin as salaries if agreeable to both parties that make up the whole agreement.
• Impact on Financial Inclusion: The bill would foster new opportunities for financial inclusion using Bitcoins as an exchange medium for those who have no access to the largely existing traditional banking services in Brazil.
• For Global Adoption of Cryptocurrencies: This act is subsumed under the phenomena wherein countries have moved toward bold recognition of Bitcoin in their own financial systems like in the case of El Salvador.
• Potential Challenges and Concerns: Here we might witness major concerns regarding Bitcoin, its volatility, the governance around it, and the logistical hindrances to putting cryptocurrencies through Brazil’s financial system, including taxes and report filing.

PL 957/2025 BY Luiz Philippe of Orleans and Braganza

On March 12, 2025, a big new bill was presented in Brazil’s National Congress, and today, on March 18, 2025, Federal deputy Luiz Philippe de Orleans e Bragança has introduced a bill proposing regulation of crypto payments for wages, remunerations and labor benefits, which may put the country in the history book by allowing salary payments in Bitcoin. The bill proposed by congressman Luizão Goulart is agnostic to the question of requiring companies to pay salaries in crypto but leaves space for payment in the currency to the extent these are agreed upon by the employer and the employee.

How Will the Bill Function?

The proposed law does not require any company to use Bitcoin as a currency in paying employees, but in such cases, companies would be free to operate under individual contracts. Payment of wages, as such, would be made in full Brazilian Real (BRL) for the benefit of its workers, who, in turn, would agree collectively on a percentage of their wages to be converted into Bitcoin, contingent upon the approval of their employer. The terms of such a business contract would have to provide for all such conditions.

In fact, it also provides for the legal standing of this kind of new payment modality while ensuring compliance with the already-existing taxation legislation in Brazil. Salary payments, then, in Bitcoins will ensure tax reporting and income tax adherence, among others. 

Why Is This Proposal Very Important?

There are certainly quite a number of reasons that make this bill very important.

Financial inclusion is yet to be fully established in Brazil, especially in rural areas or low-income groups. The use of Bitcoin for salary payments has the potential to carve out avenues for financial inclusion as an alternative for populations that do not have access to traditional banking systems. Being an international digital currency, Bitcoin could empower the underbanked by giving them greater foothold to operate within the global economy.

Recently, Brazil has seen a sudden rise in Bitcoin adoption. With the millions of Brazilians actively trading and investing in Bitcoin, cryptocurrency adoption in Brazil is among the highest in Latin America. The new bill could speed up even more mainstream acceptance of cryptocurrencies and further cement Brazil’s status as the cryptocurrency pioneer. 

There are challenges and risks

There will be some challenges and risks to overcome in order for salary payments to be accepted:

Price Volatility of Bitcoin

The foremost concern is Bitcoin’s volatility. The historical fluctuations in the price of Bitcoin have rendered it very uncertain for use in daily transactions. While Bitcoin may very well increase its value very quickly, it can also lose value just as quickly. If an employee is paid in Bitcoin, he may wake up the next morning to find the value of his paycheck has diminished considerably, since the price dropped overnight.

Regulatory and Tax Issues

Concise regulatory guidelines and taxation policies need to be defined and created by Brazil for the enforcement of salary payments in Bitcoin. These regulatory problems include capital gains tax on Bitcoin appreciation, income tax reporting on salary payments received in Bitcoin, and pertinent corporate tax regulations. For the protection against possible abuses and to ensure the transparency and legitimacy of the system with respect to the financial laws of the land, a legal framework must be scrupulously put in place.

Moving Forward for Cryptocurrency in Brazil

The proposed Bitcoin salary payment is a part of the trend of general cryptocurrency adoption in Latin America. Countries like El Salvador have legalized Bitcoin as a method of payment, while others are mulling over how to incorporate cryptocurrencies into their financial ecosystems.

More News: Brazil Makes History: First XRP Spot ETF Passes, Local Bank Seeks XRPL Stablecoin

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