A new proposal in the Brazilian Congress calls for a tax exemption both for the importation of cryptocurrency mining equipment and for any mining carried out with renewable energy sources..
A December 4 report from the Brazilian media Seudinheiro explains that A series of new proposals by Brazilian lawmakers could reduce the criticism that cryptocurrencies receive in the largest country in South America.
Congress also heard a proposal for cryptocurrencies to be considered currencies rather than goods.. If this proposal is approved, cryptocurrency exchanges will be able to provide financial services and issue loans to Brazilian residents.
Senator Irajá Silvestre Filho presented the three proposals to Congress. It is currently unclear how much support the proposals have in the legislature, but there is a lot of support from the Brazilian cryptocurrency community..
Ray Nasser, CEO of Arthur Mining, said that If Brazil Approves Tax Exemption For Cryptocurrency Miners, It Could Become A Global “Mining Mecca”.
On the condition that cryptocurrencies become a legal currency, the Central Bank of Brazil would be authorized to issue a central bank digital currency (CBDC). This would put Brazil among nine other countries or jurisdictions that currently issue CBDCs to their residents.
Currently, Brazil produces slightly less than half of its electricity from renewable sources, according to the International Trade Administration. The cost per kilowatt hour is about USD 0.12, which places it more or less in the middle of the world peloton in this regard.
Taynaah Reis, CEO of Moeda, a Brazil-based blockchain finance company, told Cointelegraph:
“Cryptocurrencies are growing rapidly in Brazil and regulatory bodies have been very proactive and protective in terms of incentivizing mining and writing policies on best practices, as major companies announced their plans on the inclusion of cryptocurrencies.”
Reis also said that miners would have to register their equipment with the Brazilian government as a means of controlling the ecosystem.
There are concerns about energy supply in Brazil, where energy rationing is becoming a reality. Power rationing is when small portions of a country receive lesser amounts of power to protect the overall electrical grid.
Rudá Pellini, president of Arthur Mining, said that Although Brazil grapples with energy rationing, it does not see the new addition of Bitcoin miners as a threat to the energy supply.:
“One of the main problems in the energy issue in Brazil is transmission. We have a large surplus of energy generation in the country, and it is possible to promote greater investments in the generation of clean energy. “
Electricity supply has been a constant problem in Kazakhstan, which has become the second country in the world where Bitcoin is mined.
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