Brazil Proposes Law to Allow Salary Payments in Bitcoin

Brazil is considering new legislation that would allow workers to receive up to 50% of their salary in Bitcoin, aiming to modernize the financial system and offer greater flexibility to employees. 

The bill, introduced by federal deputy Luiz Philippe de Orleans e Bragança, stipulates that at least 50% of the salary must be paid in Brazilian reais to protect the national currency. However, exceptions are made for foreign workers and independent contractors, who could receive their entire salary in cryptocurrencies, provided it is stipulated in their contracts. 

To ensure fairness and security in transactions, the exchange rate for Bitcoin payments will be based on official rates announced by institutions authorized by the Central Bank of Brazil. Additionally, employers will be required to provide detailed statements to workers and educate them about associated risks, such as market volatility and security concerns. 

If approved, this law would position Brazil alongside countries like Portugal, Japan, and Switzerland, where Bitcoin salary payments are already permitted under certain conditions. Proponents argue that it would increase financial inclusion and foster innovation while protecting workers’ stability. 

However, there are associated risks. Bitcoin’s price volatility could affect the value of the salary between the payment date and when the worker decides to use it. To address this concern, the bill requires companies to educate employees about the risks before opting for this payment method. 

Currently, the bill is under discussion and needs to be approved by both the Chamber of Deputies and the Federal Senate. If it receives approval from both houses, it must be signed by the president to become law.