A large Brazilian bank has offered taxpayers a new, quick and easy way to use cryptocurrency to settle loans.

Brazilian taxpayers can now use passwords to pay taxes, jointly promoted with Bitfy, a Brazilian cryptographic company, according to a statement issued by Brazilian financial institutions on February 11th.

Under the escrow of Bitfy, Brazilians with passwords can use these, and Bitfy will become the "collection and payment partner" of the key Brazilian bank.

It stresses that, in addition to bringing convenience to customers, it can also "expand" the use and connection of the digital currency ecosystem, complete "covering all over the country", and have a financial institution with a good reputation to protect the rights and interests of consumers.

Johnson Shawch, founder and CEO of Bitfy, added, "A new digital economy is a competitive metal catalyst for the future."

Password users will go through a simple process, and the small details of the tax, together with the amount of Brazil's official online loan currency, the real, show that the real needs to be converted into the cryptocurrency of choice to pay for income and expenditure details, the statement said.

Taxpayers will scan the bar code to check their tax returns, similar to the way they pay "boleto", which is one of the most popular payment methods in Brazil.

Before that, the Brazilian city of Lisbon began accepting cryptocurrency as tax payments in October 2022.

In December 2022, Brazil adopted a regulatory framework to legalize the application of cryptocurrency as our payment method.

The law is likely to come into effect in June this year.

Brazilian Chinese citizens were told in May 2022 that they would be required to pay taxes on similar password transactions, such as exchanging BTC (BTC) for Ethernet Square (ETH).

But not all Brazilian password investors have to apply for his deal. Regulators require that only investors who buy and sell more than 35000 reais ($6711) by password should pay corporate income tax.