A new proposal in the Brazilian Congress reportedly seeks approval for removing taxes to be imposed on both the importation of crypto mining rigs, and on any mining employing renewable energy sources.

Specifically, as revealed by local news outlet Seudinheiro, a string of new proposals from Brazilian legislators could help bring down the criticism falling upon crypto in the most major nation across the South American area. 

Congress further received a proposal for cryptocurrency to be classified as a currency as opposed to a commodity. Should this proposal obtain approvals, crypto exchanges will have the freedom to offer financial services, as well as issuing loans to Brazilian residents.

Senator Irajá Silvestre Filho made all three proposals to congress. The amount of support the proposals manage to reel in in the legislature is yet to be specified, but it receives significant backing from the Brazilian crypto community.

Ray Nasser, Head of Arthur Mining, reportedly claimed that should Brazil give the greenlight to the tax exemption on crypto miners, it could turn into an international “Mecca of mining.”

Under the condition that cryptocurrency secure the status of a legal currency, the Central Bank of Brazil would receive the permission to facilitate the issuance of a digital real central bank digital currency (CBDC).

This would help Brazil obtain a standing in the list of nine other nations issuing CBDCs to their residents at the moment. 

Brazil is reportedly producing nearly fifty percent of its  electricity from renewable sources at the moment, as per the International Trade Administration. 

“Crypto is rising rapidly in Brazil and the regulatory bodies have been very proactive and protective on incentivising mining and drafting policies on best practices as major businesses announced their plans on including crypto.” Taynaah Reis, CEO of Moeda, a Brazil-based blockchain finance firm, further remarked.