In a remarkable move, Brazil may soon legalize the payment of salaries in Bitcoin. A bill to this effect was recently submitted to the National Congress, potentially making the country a pioneer in integrating cryptocurrencies into the labor market.
Brazil could soon be a pioneer in integrating cryptocurrencies into the labor market. A new bill submitted to the National Congress proposes that workers receive their salaries in Bitcoin and other digital assets. The bill, authored by prominent politician Luiz Philippe de Orléans-Braganza, aims to regulate the payment of salaries in digital assets.
The bill requires companies to provide detailed payment records and offer financial education to employees who wish to receive their salaries in digital assets. It will focus on issues such as market volatility and transaction security. The calculation of labor and social security contributions will be based on the total amount of compensation in reais.
The process for passing such a law in Brazil begins with an analysis in the Chamber of Deputies. If approved, the bill is forwarded to the Federal Council. Brazilian legislation, specifically Law No. 14,478/2022, treats Bitcoin and other digital assets as ‘virtual assets,’ meaning the new proposal will use the same terminology to regulate labor activities.
An interesting aspect of the bill is that at least 50% of salaries should remain in Brazilian reais to maintain the usefulness of the national currency. However, the bill does not apply to freelancers, expatriates, or the self-employed, as they already have the freedom to choose their payment method, many of whom often prefer cryptocurrencies.
Luiz Philippe sees the bill as an opportunity to strengthen Brazil’s status as a global center for digital assets. He argues that this could not only increase competitiveness in the digital asset sector but also attract foreign investment. It would also give workers the freedom to decide for themselves how they wish to maintain their employment rights.
The proposal is part of a broader, friendly stance toward digital assets in Brazil. The country is known for its clear regulatory framework, which provides a safe environment for individuals and businesses in the crypto space. For example, the well-known crypto exchange Binance announced its expansion in Brazil earlier this year and became the first exchange to receive a brokerage license.
Brazil is not the first country to consider this approach. An Argentinian lawmaker introduced a similar proposal in 2021. According to the author of the Argentinian bill, Jose Luis Ramon, the initiative would help workers maintain their purchasing power and increase their financial independence.
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