Brazil is moving toward a shift in how employees can be compensated, with new legislation proposing the use of cryptocurrencies like Bitcoin for wage payments.
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Federal deputy Luiz Philippe de Orleans e Bragança introduced the bill on March 12, aiming to make crypto payments a legal option for salary distribution, while still requiring a portion of wages to be paid in Brazil’s national currency, the real.
The bill outlines that employers could pay up to 50% of an employee’s salary in crypto, but full payments in digital currencies would be prohibited. Exceptions would apply for foreign workers or expatriates. Independent contractors, however, could receive their entire payment in cryptocurrency, depending on their contractual terms. A critical detail is that the exchange rate for crypto payouts would be based on the official rate set by the Central Bank of Brazil.
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Orleans e Bragança views the proposal as an opportunity to strengthen Brazil’s financial technology sector and bring more crypto investment into the economy. He also argues that the bill would grant more autonomy to workers and employers in negotiating employment terms. He pointed to countries like Japan and Portugal, where similar policies have led to greater adoption of digital currencies, as successful examples for Brazil to follow.
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This move comes as Brazil explores broader efforts to integrate blockchain technology and cryptocurrency into international financial dealings, such as BRICS transactions. While the bill could make waves in the crypto world, its success will depend on how it balances innovation with regulatory concerns.
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