Brazilian lawmakers propose zero tax on green bitcoin mining
A new proposal made in the Brazilian Congress has called for a tax exemption on both the importation of crypto mining rigs as well as on any kind of mining activity conducted with the utilization of renewable energy sources.
A Brazilian local media outlet Seudinheiro has reported on December four that a series of new proposals are underway from Brazilian lawmakers regarding the reduction of the criticism that cryptocurrency gets in the largest country of South America.
Congress has also heard a proposal for having crypto regarded as a currency as opposed to a commodity. If the present proposal is passed, crypto exchanges would be able to provide financial services and issue loans to Brazilian citizens.
Senator Irajá Silvestre Filho has made all the three proposals to the Congress. Although it is presently unclear how much support the proposals would witness in the legislature, but there is plenty of support for it among Brazil’s crypto community.
CEO of Arthur Mining, Ray Nasser, has said that Brazil would become a global “Mecca of Mining” if it approved the current proposal.
According to the condition in the proposal, if cryptocurrency becomes a legal currency in the country, its Central Bank would be allowed to issue a digital central bank digital currency (CBDC). This would then put Brazil among nine other countries that have recently issued CBDC to its residents.
Brazil presently produces half of its electricity from renewable sources, as per the International Trade Administration. The cost per kilowatt-hour there is about $0.12, putting it almost in the middle of the global pack.
Taynaah Reis, Moeda’s CEO, has said that crypto is “rising rapidly in Brazil”, and the regulatory bodies have been extremely “proactive and protective” about incentivising mining as well as drafting policies regarding best practices. Moeda is a Brazilian blockchain finance company.
Reis has also said that miners would have to register all their equipment with the Brazilian government under the requirement of creating a monitoring the ecosystem.
Owing to existing power supply concerns in Brazil, power rationing is turning into a reality. Power rationing happens when small portions of a country are provided with smaller amounts of power so the overall power grid can be kept safely protected.
President of Arthur Mining, Rudá Pellini, has said that whereas Brazil deals with power rationing, the new addition of Bitcoin miners doesn’t seem a threat to the power supply. Pellini said that one of the main problems in the country is the transmission.
There are already large energy generation facilities in Brazil, so it is possible to promote “greater investments in clean energy generation,” he added.
Electricity supply has also been an ongoing issue in the Central Asian country of Kazakhstan, which has – owing to China’s crackdown on crypto businesses – has become the second-biggest Bitcoin mining nation in the world as Chinese crypto traders migrate towards crypto-friendly environments.
