Brazil, popularly known as a miner’s haven, is now considering levying zero tax bills to Bitcoin miners that mine with renewable energy sources.
The South American country is widely famous for its relaxed and crypto friendly regulations. This behavior is now being extended to its cryptocurrency mining industry.
The country’s Congress has reportedly heard several proposals proposing zero taxation of green miners. The proposals aired in the congress comprehensively compel the government to veto the reform, which will also extend to cover the importation of crypto mining rigs.
In its publications earlier this month, on December 4,local news agency Seudinheiro enlightened the public about this new development. In said publication ,it explained how a chain of new proposals and successive reforms will desensitize the people’s misplaced opinions about cryptocurrency, in the country.
Another radical proposal brought forward to the committee, was a proposal that looks to see cryptocurrencies adopted as a legal tender in the country. If the proposal gets approved, the country’s financial sector will experience an infusion of growth inducing innovations that will see a sustainable growth in its socioeconomic and financial sectors.
Adoption of cryptocurrency as a legal tender in the country will ensure that the deployment of its proprietary decentralized digital assets can be permitted by the government. The agency that is responsible for the deployment is the Brazilian regulatory body, its national Central Bank. The bank will issue Central Bank Digital Currency (CBDC) tokens to its citizens for usage in their day to day activities.
All three proposals were presented by Senator Irajá Silvestre Filho, guesses can only be made as to how receptive the removers of congress are, to these reform proposals. The North American Cryptocurrency community though, has rallied in numbers to show their support for the proposed reforms.
Arthur Mining, a U.S based mining company has published an announcement regarding the development, company CEO Ray Nasser, believes that the exemption of tax for green miners will develop the country into an ideal ‘Mining Haven’.
Crypto Mining Around The World
Bitcoin and cryptocurrency mining has increasingly gathered attention over the years, it is a relatively profitable venture, even though it is energy intensive. Due to concerns about the environmental impact of mining crypto, innovative mining alternatives have been developed. Green mining which refers to renewable energy powered crypto mining, is a crucial step in the development of other environmental and energy friendly mining mechanisms.
In Brazil, miners will now be required to mandatorily register their relevant hardware to the authorities or they risk immediate shut down.
Meanwhile earlier this week, Iceland had rejected requests from new Bitcoin miners for extra power due to its nationwide power shortage.
The two cases can be used as a model for describing the situation of things regarding the cryptocurrency mining industry worldwide. The immense cost of energy required for crypto mining is a major setback that has bothered crypto miners since the inception of the industry. In various crypto mining -friendly nations, different regulations have been developed to effectively manage the ‘consequence’ of crypto mining.
Brazil’s Energy Difficulties
According to energy expert Ruda Pellini, Brazil is currently generating more than enough energy needed to sufficiently serve all sectors of the country, but it fails marginally to effectively and efficiently transport the generated energy to consumers’ stations.
The correction of this flaw will see greater investments, both locally and internationally in the country’s green energy production .
