A new proposal by the Brazilian Chamber of Deputies requires tax exemptions on both the import of cryptocurrency mining rigs and mining done using renewable energy sources.
A December 4 report from Brazilian media outlet Seudinheiro explains that a series of new proposals from Brazilian legislators can reduce criticism of cryptocurrencies in South America’s largest country.
Congress also heard a proposal to consider cryptocurrencies as currencies rather than commodities. If this proposal is passed, the cryptocurrency exchange will be able to provide financial services and issue loans to residents of Brazil.
Senator Irajá Silvestre Filho has submitted all three proposals to Parliament. It is currently unknown how much support the proposal has in Congress, but there is plenty of support from the Brazilian crypto community.
Reinasel, CEO of Arthur Mining, said that if Brazil passed the cryptominer tax exemption, it could become a global “mining mecca.”
The Central Bank of Brazil is allowed to issue the Digital Real Central Bank Digital Currency (CBDC), provided that the cryptocurrency becomes the statutory currency. This will put Brazil in nine other countries or jurisdictions that currently issue CBDCs to residents.
According to the Bureau of Foreign Trade, Brazil currently produces just under half of its electricity from renewable energy sources. The cost per kilowatt hour is about $ 0.12, which is almost in the middle of the global pack.
Taynaah Reis, CEO of Moeda, a Brazilian-based blockchain finance company, told Cointelegraph:
“Cryptocurrencies are growing rapidly in Brazil, and as major companies have announced plans to include cryptocurrencies, regulators have been very active and protective in drafting policies on mining incentives and best practices. . “
Wraith also said miners need to register their equipment with the Brazilian government as a means of monitoring the ecosystem.
In Brazil, where electricity distribution is becoming a reality, there are concerns about existing electricity supply. Electricity distribution is a place where a small amount of electricity is supplied to a small part of the country to protect the entire power grid.
Related: Kazakhstan decides whether to launch CBDC by late 2022
Ruda Perini, president of Arthur Mining, said Brazil deals with electricity distribution, but does not see the new addition of Bitcoin miners as a threat to electricity supply.
“One of the main problems in Brazil’s energy problem is transmission. There is a large surplus of energy generation in the country and it is possible to promote investment in clean energy generation.”
In Kazakhstan, the world’s second-largest Bitcoin mining country, electricity supply remains a problem.
