The Brazilian government has unveiled a new blockchain network with the aim of fighting corruption in public spending by effectively tracking it. The network was launched in an event streamed on YouTube after the signing of a cooperation agreement between the Uniam Court of Accounts (TCU) and the Brazilian Development Bank (BNDES). This decision is part of Brazil’s interest in being at the forefront of integrating blockchain technology into its public administrative system and helping to improve both the efficiency and traceability of the process.
According to a press release issued by TCU ahead of Monday’s launch event, the Brazilian Blockchain network is still under development but will be used by a number of government institutions with the aim of improving services provided to citizens and provide better transparency on public spending.
“The network, public and not-for-profit, will be national in scope and will connect participating institutions in a governance structure and technological infrastructure with the aim of facilitating the adoption of blockchain technology in solutions aimed at the public interest” , reads the report. communicated once translated from Portuguese, verbatim.
The launch of Brazil’s Blockchain network also comes at a time when Brazil’s tax body, the Federal Revenue of Brazil (RFB), has passed a law that will require investors to pay personal income tax when they trade a digital currency against another.
According to a separate report from CoinGeek, the law clarifies that even when digital currency transactions do not involve Brazilian real or any other fiat currency, any profit from the transaction is taxable.
“The capital gain calculated on the sale of cryptocurrencies, when one is directly used in the acquisition of another, even if the acquisition cryptocurrency is not previously converted into reais or another currency fiduciary, is imposed by personal income tax, subject to progressive rates, in accordance with the provisions of article 21 of law no.
However, the law will not apply to all traders. The RFB caps the reporting requirement to transactions that exceed 35,000 reals (about Rs. 5.6 lakh). The RFB says the statement was made following consultations that began last year.