Brazil could soon become the next country to legalize salary payments in Bitcoin, following the submission of a bill to the National Congress. The bill, introduced by politician Luiz Philippe of Orleans-Braganza, proposes allowing employees to receive their salaries and other compensations in Bitcoin and other digital currencies.
The proposal calls for the regulation of salary payments, benefits, and other remunerations using virtual assets. If passed, the bill would first be reviewed by the Chamber of Deputies, and if approved, it would move to the Federal Senate for further evaluation. Brazil’s existing Law No. 14,478/2022 already classifies Bitcoin and other cryptocurrencies as ‘virtual assets,’ and this new proposal would adopt the same terminology to regulate employment-related payments.
Philippe’s bill outlines that companies must provide clear payment statements and offer financial education for employees who choose to receive their salaries in digital assets. The financial education should cover key concepts such as market volatility and transaction security. Additionally, the bill specifies that labor and social security contributions should be calculated based on the total salary value, which will be expressed in Brazilian reais.
The bill, submitted to Congress on March 14, allows workers to opt to receive up to 50% of their wages in Bitcoin or other digital assets. However, it does not mandate Bitcoin acceptance, and both employees and employers must agree on this payment method. If either party wishes to stop using digital assets for payments, they can do so at any time.
To preserve the value of Brazil's national currency, the bill stipulates that at least 50% of the payment must remain in Brazilian reais. It also does not apply to freelancers, expatriates, or self-employed workers, as they have the flexibility to choose their preferred payment method, often in crypto.
Philippe believes that the bill will help Brazil position itself as a global hub for digital assets, attracting foreign investment and providing employees with more flexibility in choosing how they are compensated. This move also reflects Brazil's increasing openness to the crypto sector, highlighted by the expansion of crypto exchange Binance in the country earlier this year, where it became the first exchange to receive a broker license.
Brazil is not the first country to explore such legislation. In 2021, an Argentine lawmaker introduced a similar proposal, aiming to give workers the option to receive part or all of their salaries in Bitcoin, with the goal of protecting their purchasing power and increasing financial independence.