The Brazilian Congress has proposed a tax exemption for both crypto mining rigs importation and any mining using renewable energy sources.
Brazilian media outlet Seudinheiro reported Dec. 4, that a number of new proposals by Brazilian legislators could help reduce criticisms crypto receives in South America’s biggest country.
Congress heard another proposal that cryptocurrency should be considered a currency and not a commodity. If the proposal is approved, cryptocurrency exchanges will be allowed to offer financial services to Brazilian residents and to issue loans.
All three of the proposals were made by Senator Iraja Silvestre Filho to Congress. Although it is not clear how much support these proposals receive in the legislature at the moment, there is plenty of support from Brazilian crypto communities.
Ray Nasser (CEO of Arthur Mining) stated that Brazil could be a “Mecca” of mining if it passes the tax exemption for crypto miners.
The Central Bank of Brazil would be permitted to issue a digital real central banking digital currency (CBDC) if cryptocurrency is made legal. Brazil would join nine other jurisdictions or countries that issue CBDC to their residents.
According to the International Trade Administration, Brazil produces less than half its electricity from renewable sources. It is roughly at the middle of the global pack when it comes to the cost per kilowatt-hour, which is $0.12.
Cointelegraph was told by Taynaah Ris, CEO, Moeda, a Brazilian blockchain finance company.
“Crypto is growing rapidly in Brazil, and the regulatory agencies have been very proactive in protecting mining and drafting policies for best practices. Major businesses announced plans to include crypto.”
Reis stated that miners will have to register their equipment with Brazil’s government in order to monitor the ecosystem.
Brazil is facing power supply problems and power rationing may become a reality. A power rationing scenario is when small areas of a country receive less power to preserve the entire power grid.
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Ruda Pellini is the president of Arthur Mining. He stated that although Brazil has power rationing issues, he doesn’t see the addition of Bitcoin miners as a threat.
Transmission is one of the major problems in Brazil’s energy problem. There is a significant surplus of energy generation in Brazil, so it is possible for more investments to clean energy generation.
Kazakhstan is the second-largest Bitcoin mining country in the world.