Brazil is moving towards bitcoin integration in its economy with a new bill proposed in the National Congress that allows workers to receive part of their salary in bitcoin and other digital currencies.
If approved, this law will give employees the option to receive up to 50% of their wages in bitcoin, and the other 50% in the national currency, the Brazilian real.
The bill was submitted by Luiz Philippe of Orleans e Bragança, federal deputy from São Paulo. He believes this proposal will modernize Brazil’s financial system, encourage investment and give workers more flexibility.
The proposed law, titled “Regulation of the Payment of Salaries, Remunerations, and Labor Benefits with the Use of Virtual Assets” is being reviewed by the Chamber of Deputies. If approved, it will go to the Federal Senate for discussion.
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The bill lets employees and employers agree on bitcoin payments but regular workers can’t receive full salary in digital assets.
At least 50% of the salary must be in reais to protect the national currency. But there are some exceptions. Foreign workers and independent contractors can receive full salary in bitcoin as long as it’s in their contracts.
To ensure fairness and security, the exchange rate for bitcoin payments will be based on the official rates announced by institutions authorized by the central bank.
Employers will also have to give detailed statements to the workers and educate them about associated risks, such as market volatility and security concerns.
Brazil has been moving fast in the Bitcoin space. The country already considers bitcoin and other digital assets as “virtual assets” under Law No. 14,478/2022. This new bill will expand these regulations to include labor payments.
Luiz Philippe sees this bill as a way to make Brazil a global leader in digital finance. He said this would attract investments and give workers more flexibility in wage payments.
If approved, Brazil will join countries like Portugal, Japan and Switzerland where bitcoin payments for wages are already allowed under certain conditions. The supporters of the bill argue it would increase financial inclusion and innovation while protecting workers’ stability.
Supporters of the bill believe that allowing salary in bitcoin will benefit both workers and businesses.
Bitcoin payments will help employees protect their earnings from inflation, a big issue in many South American economies. It will also reduce banking fees and speed up cross-border transactions, making life easier for foreign workers and freelancers.
But there are risks. Bitcoin’s price can fluctuate a lot, so a worker’s salary could lose value between the payment date and when they decide to spend it. To address this, the bill requires companies to educate employees on the risks before they opt for this payment method.
Financial experts warn that regulation and oversight will be necessary to prevent fraud and speculation. If the bill passes, the government will need to create clear rules to ensure transparency and worker protection.
The bill is still in discussion. It needs to pass in the Chamber of Deputies and then in the Federal Senate. If approved by both houses it will need to be signed by the president to become a law.
