Brazil’s Proposed Bill on Wage Payment in Bitcoin: An Overview
A proposed bill in Brazil aims to allow partial wage payments in bitcoin, with numerous regulations ensuring that at least 50% of earnings remain in fiat currency. The legislation, sponsored by Luiz Philippe de Orleans e Bragança, focuses on integrating Brazil into the digital finance sector while educating workers about cryptocurrency volatility. The proposal requires further legislative approval before it can become law.
In Brazil, a recent legislative proposal aims to permit multifaceted wage payments through cryptocurrencies. The bill, known as the “Regulation of the Payment of Salaries, Remunerations, and Labor Benefits with the Use of Virtual Assets,” would allow employees to receive a portion of their compensation in bitcoin or other digital currencies.
Spearheaded by lawmaker Luiz Philippe de Orleans e Bragança, the bill requires endorsement from the Chamber of Deputies before proceeding to the Senate. If approved, employees could accept up to 50% of their remuneration in bitcoin, contingent upon mutual agreement between employer and employee.
However, the bill mandates that at least half of wage payments be fulfilled in the national fiat currency, thereby restricting full compensation in bitcoin. Companies would also need to provide comprehensive payment statements, along with educating workers on issues such as market volatility and transaction security related to cryptocurrencies.
De Orleans e Bragança advocates for this initiative as a means of integrating Brazil into the global digital finance sector, similar to the practices adopted by nations like Portugal, Japan, and Switzerland. He emphasizes that these reforms could incentivize financial investments in Brazil, stimulate innovation, and grant workers greater autonomy in wage preferences. The use of stablecoins, popular in Brazil, may also serve as a defensive measure against inflation.
Despite the potential benefits, the bill is still under review, and it remains uncertain whether it will receive legislative support as it progresses through government scrutiny.
The newly introduced bill in Brazil seeks to regulate the payment of wages via bitcoin, allowing employees to receive a part of their earnings in digital currency while ensuring substantial payment is made in fiat. This initiative is viewed as a strategic move to enhance Brazil’s position in the digital financial landscape. However, its future depends on the reception it receives from lawmakers in the Chamber of Deputies and beyond, with uncertainty surrounding its eventual outcome.
Original Source: news.bitcoin.com
