Cryptocurrency exchanges could also be affected as the requirement that they report all user data and transactions involves the use of an RFB system. Since the system will be shut down if the agency runs out of money, crypto exchanges would simultaneously be legally compelled but unable to comply with data reporting requirements.
Brazil has seen a tumultuous week in the cryptocurrency industry. The tax agency announced that they are running out of funds, the Securities and Exchange Commision (CVM) claimed that Brazil is “broke”, the Central Bank of Brazil introduced a new instant payment system, and Cielo, Brazil’s largest credit card operator, is now accepting Bitcoin and crypto.
Brazilian tax agency is running out of money
Cointelegraph Brasil reported on Sept. 6 that Brazil’s tax agency – the Department of Federal Revenue (RFB) – stated that it will run out of funds by Sept. 24. If by that date the Brazilian government does not unlock financial resources, the tax agency will terminate agreements with contractors, stop issuing individual taxpayer registry identification numbers and paying income tax refunds.
Brazil is ‘broke’, prevents new investors from entering crypto market
A recent survey by the CVM shows that almost 70% of Brazilians have no means to deal with unforeseen financial events, and that only 9% can afford expenses for which they did not budget.
The survey further reveals that the dire financial situation of Brazilians may prevent new investors from entering cryptocurrency markets and stiffen the growth of the industry as the majority of the population is simply “broke”, according to the CVM.
Central Bank of Brazil announces instant payments system
The Central Bank of Brazil recently announced the development of a new instant payment system that will change how funds are sent within the country. Brazilian citizens will purportedly be able to send and receive money in seconds, instead of several hours and even days.
It is expected that the new payment system will prove a boon for cryptocurrencies such as Bitcoin, as it will allow deposits and withdrawals from exchanges on weekends and outside business hours.
Major credit car operator now accepts Bitcoin and cryptocurrency payments
Cielo, one of Brazil’s largest credit card companies and point-of-sale (POS) system providers, is now accepting Bitcoin and cryptocurrency payments on its POS terminals. A POS user must first create an account with partner networks Uzzo or Criptohub in order to accept crypto payments.
To accept a crypto payment, the POS generates a QR code to which the payer can send Bitcoin and other cryptocurrencies. The firm notes that the payee does not receive the actual digital asset, but rather a cash conversion in their Cielo account.
Cielo may reportedly expand crypto payment capabilities to its mobile app CieloPay in October. Cielo is the biggest payment system company in Latin America and has more than 1.4 million points-of-sale across 5,500 municipalities in Brazil.
Brazilian radio show pokes fun at Bitcoin Bank Group
A local radio show, the Panic Program, poked fun at the Bitcoin Bank Group (GBB) on Sept. 3, because the group suspended the operation of its NegocieCoins and TemBTC exchanges which led to complaints from its disgruntled customers.
The exchange is reported to have more than 30,000 undocumented customers and is facing varying degrees of fraud charges. In August, the Brazilan courts issued search and seizure warrants against the owners of GBB.