“Mining Mecca”: Brazil is not considering a tax on green Bitcoin mining | News Dec 10

The Brazilian Congress has heard several proposals advocating tax exemptions for miners and giving cryptocurrency national currency status.

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A new proposal in the Brazilian Congress calls for tax exemptions for both the import of cryptocurrency mining rigs and any mining that uses renewable energy sources.

A December 4 report by Brazilian media company Seudinheiro said a new series of proposals from Brazilian lawmakers could dampen criticism of cryptocurrencies in South America’s largest country.

Congress also heard a proposal to treat cryptocurrencies as a currency rather than a commodity. If this proposal is approved, cryptocurrency exchanges can offer financial services and lend to Brazilians.

Senator Irajá Silvestre Filho presented all three proposals to the National Assembly. The level of support for the proposals in lawmakers is currently unknown, but there is a lot of support from the Brazilian crypto community.

Ray Nasser, CEO of Arthur Mining, said if Brazil allowed tax exemptions for crypto miners it could become a global “mining mecca”.

On the condition that cryptocurrencies become legal tender, the Brazilian central bank is allowed to issue real digital central bank currency (CBDC). That would add Brazil to nine other countries or jurisdictions that are currently issuing CBDCs to its residents.

According to the International Trade Administration, Brazil currently produces less than half of its electricity from renewable sources. The cost per kilowatt hour is about $ 0.12, which is mid-range in the world in this regard.

Taynaah Reis, CEO of Moeda, a blockchain finance company based in Brazil, told Cointelegraph:

“Cryptocurrencies are growing rapidly in Brazil and regulators were very proactive in defending the mining incentives and best practice guidelines when large corporations announced their plans to add cryptocurrencies.”

Reis also said miners must register their equipment with the Brazilian government in order to monitor the ecosystem.

There are electricity concerns in Brazil where electricity allocation is becoming a reality. When capacity is allocated, small parts of a country are supplied with smaller amounts of electricity in order to protect the entire network.

Related: Kazakhstan will decide on the introduction of CBDC by the end of 2022

Rudá Pellini, President of Arthur Mining, said that while Brazil addresses the separation of powers, it does not see the arrival of bitcoin miners as a threat to the electricity supply:

“One of the main problems with the energy problem in Brazil is transmission. We have a large energy surplus in the country and can drive major investments in clean energy generation. “

Power supply is an ongoing problem in Kazakhstan, which has become the second largest Bitcoin mining nation in the world.