Last updated: 20 April 2015
In Brazil it is possible to use Bitcoin to pay for services ranging from construction services to hotel accommodation.
In Brazil it is possible to use Bitcoin to pay for services ranging from construction services to hotel accommodation. In this article we will look at the acceptance of Bitcoin payments in Brazil.
Initially, 21,000 bitcoins were created, but in just one year a further 13 million have made their way into the market. As of April 2015, each bitcoin is worth around BRL 900.
Growth on Commerce
Bitcoin is not an official currency. That said, most jurisdictions still require you to pay taxes on income, sales, payroll or capital gains including when making payment by bitcoins. Brazilian regulation currently applies a number of taxes on the currency.
With the growth of consumers that use bitcoins, stores have started to offer payment with the digital currency by integrating payment providers into their purchase systems. One of these services is Joox, a specialized platform for designing and printing business cards. The platform uses the Argentinian system BitPagos, the first one to offer bitcoin transactions in Latin America.
Although it might appear that this technology is exclusively for the younger generation this is not the case at all. An online store called Terceira Idade which specializes in products for older people also accepts bitcoin as payment in Brazil.
PayPal also accepts bitcoin currency. The integration was made by the “PayPal Payment Hub” tool. Currently in experimental mode, this is an alternative option only for digital products.
Brazilian Regulations on Payment with Bitcoins
Although the adoption of digital currencies has not yet shown any risks to the national financial system, the Central Bank of Brazil is following the evolution of its use and participating in international forums about the subject.
In 2013, the Brazilian government created regulation for mobile payment systems and electronic currencies, including bitcoin. The law provides regulation for payment and financial institutions among other things.
This law authorizes the Brazilian Central Bank to issue the necessary norms and instructions for the regulation of digital currencies, which are not fully developed in the country.
Bitcoin Payment Gateways in Brazil
BitPay is the largest payment gateway for bitcoin around the world and it is operating in Brazil. The company has raised over BRL 32 million with major investors including Index Ventures, Founders Fund and Sir Richard Branson.
Recently, Adyen, one of the largest payment solution providers in Brazil and around the world, integrated with BitPay to allow all their customers to accept bitcoin with one simple click inside their platform. Adyen allows companies to accept payments through mobile devices, online and points of sale.
Bitinvest is another example to be considered. They are a bitcoin exchange platform that also have a payment gateway for bitcoin. They allow their clients to negotiate the rate of BRL to bitcoin and vice versa. There are also other small gateways that support bitcoin payments, such as Cryptopay and GoCoin.
Cases of Bitcoin use in Brazil
Brazil holds an increasing number of stores that accept bitcoin as a payment method. Most of them are small businesses in big cities, but there are also the cases of high-value goods outlets that allow payment to be fulfilled using the currency.
Tecnisa, one of the largest construction companies in Brazil, offers a bonus of 5% for those who use bitcoins in its first installment. For example, for every BRL 10,000 paid in bitcoins you get an additional BRL 500 off the outstanding balance of the property. For now, the company only accept payment with digital currency for the first installment of the real estate purchase, limited to the value of BRL 100,000. Any transaction in bitcoins will be held exclusively by Bitinvest.
Las Magrelas is a bike shop integrated with a bar located in the city of São Paulo. The store was the first one to accept bitcoin as payment in Latin America, back in 2013. Overall, the process of payment takes place as a virtual wallet to virtual wallet transaction.
Other small stores have also made digital payment with bitcoin available. Examples such as Webtronico, that sell parts commonly used for projects in the fields of electronics and robotics, to Kyrios Pousada, a hostel located at Maresias Beach, in the state of São Paulo. Other stores that accept bitcoin can be found on the bitcoin map, provided by Coinmap.org.