Brazil will be able to pay taxes in cryptocurrency and UAE will create its own digital currency

From now on citizens of Brazil will be able to pay taxes in cryptocurrency. This became possible thanks to the cooperation of the largest state bank of the country with a fintech company. At the same time the United Arab Emirates (UAE) announced that the country plans to have its own digital currency.

Cryptocurrency taxes

Brazil's largest state bank Banco do Brasil signed a partnership agreement with fintech company Bitfy. In a joint project, they intend to give citizens the opportunity to pay taxes in cryptocurrency as well.

According to Coindesk, the venture capital arm of Banco do Brasil has invested in Bitfy, which has developed the initiative. The new service will allow the bank's customers to instantly convert the cryptocurrencies in their accounts into Brazilian reals and pay taxes using the Bitfy app.

The newspaper notes that Brazil is now the leading country in South America in the adoption of digital payments. It is also taking many steps to regulate the crypto-asset industry. The country's authorities and financial institutions are also preparing for widespread use of the nation's digital currency.

UAE to launch its own digital currency

The UAE has announced that it will have its own digital currency, which, along with a number of other projects, will help the country become a cashless society. A statement released by the country's central bank also said that the country has launched a "Financial Infrastructure Transformation Program" aimed at digitizing financial services.

The project will be implemented in several phases. During the first, the country will issue an official digital currency (CBDC), create a domestic card system (Card Domestic Scheme) and launch an instant payments platform (Instant Payments Platform). The UAE Central Bank believes that all these measures will increase financial accessibility, security and efficiency of payments, and the country will follow the path of becoming a cashless society.

The second stage includes the development and implementation of the necessary infrastructure for the implementation of new generation projects: a financial cloud platform (Financial Cloud), customer verification tools (eKYC) and other elements. The Financial Infrastructure Transformation Program initiatives are expected to be completed in 2026.

Last week, the Virtual Asset Authority of Dubai (VARA) approved new rules for digital financial instruments. Local cryptocurrency companies are now subject to compulsory licensing, and the issue and trade of algorithmic stablcoins is prohibited.