Brazil to Allow 50% of Wages in Crypto

- Brazil Proposes Use of Cryptocurrency for Salary Payments and Trade Promotion at 2025 BRICS Summit - Goal to Strengthen Economic Independence of BRICS through Cryptocurrency-Based Financial Innovation [Unblock Media] Brazil has officially proposed the use of cryptocurrency for salary payments and trade promotion at the 2025 BRICS summit. The proposal is seen as a strategic approach to promote financial integration among BRICS member countries and reduce dependence on the US dollar by leveraging blockchain technology. According to a bill submitted by Brazilian Congressman Luiz Philippe de Orleans e Bragança, workers in Brazil may receive up to 50% of their salary in cryptocurrency by mutual agreement. This includes the use of cryptocurrencies such as Bitcoin for salary and benefits payments and is expected to be utilized for trade settlements among BRICS countries. The main goals of the bill are as follows: - To activate international trade through financial innovation using cryptocurrency - To establish a transparent salary payment system by adopting blockchain technology - To strengthen the economic sovereignty of BRICS countries by moving away from the US dollar-centric international financial system - To reduce foreign exchange risks and improve financial efficiency The Brazilian government's push for a cryptocurrency salary payment system could offer several key advantages compared to traditional financial systems. Firstly, salary payments and trade settlements using cryptocurrency could be faster and more cost-effective than current banking systems. Utilizing blockchain networks simplifies the remittance process, thereby streamlining trade procedures. Secondly, BRICS countries currently use the US dollar as the primary payment method in global trade. However, by establishing a cryptocurrency-based system, they could reduce dollar dependence and form an independent economic network among BRICS countries. Thirdly, one of the major risks associated with cryptocurrency is its high price volatility. Workers receiving half of their salary in cryptocurrency must bear the risk of fluctuating salary value. Hence, ensuring stability and legal protection at the government level is necessary. Fourthly, a salary payment system using blockchain technology records all transactions in a distributed ledger, making tampering impossible. This contributes to preventing fraudulent activities and increasing financial trustworthiness. Reactions to Brazil's proposal among BRICS countries are mixed. China and Russia are already actively researching cryptocurrencies and central bank digital currencies and are showing interest in establishing a unique payment system among BRICS countries. India, while legally restrictive on cryptocurrency, sees potential in using blockchain technology for trade. South Africa is reviewing cryptocurrency regulation at the central bank level and exploring collaborative possibilities among BRICS countries. The global financial market interprets BRICS's actions as a significant signal that could change the paradigm of future international trade. If BRICS countries adopt a cryptocurrency-based payment system, the de-dollarization of the international financial system may accelerate. Brazil’s proposal is viewed as a strategic approach to enhance international trade and financial integration by utilizing cryptocurrency and blockchain technology. While it holds the potential to reshape the existing economic order and create new opportunities, adequate preparation to address cryptocurrency volatility and establish a stable system is essential. The future of global finance and trade hinges on how this bill is discussed at the BRICS summit and the stance of other member countries. Attention is focused on whether BRICS will succeed in establishing an independent economic system using cryptocurrency.