CPMF stands for Provisional Contribution on Financial Transactions. The dreaded tax was created in 1996 in Brazil to be a temporary contribution (as its name indicates) to help the government maintain the public health network.

At its inception, the CPMF had a rate of 0.2% applied to any value transfer through banks and financial institutions. This means that the tax even applies to the payment of a credit card bill, for example.

Over time, the CPMF lost its temporary character and became part of the set of taxes that should be paid to the state. By its end in 2007, the rate had risen to 0.38 percent.

On September 10, <a href="https://br.financas.yahoo.com/noticias/governo-planeja-cobrar-imposto-0-162100987.html">Yahoo</a> reported that the tax refund is very likely, with an initial <a href="https://www.cryptoknowmics.com/crypto/bitcoin-price-rate-nearly-10500-while-ether-and-rest-of-the-altcoins-gain-surge/">rate</a> of 0.4%, even higher than the last figure experienced before the extinction of 2007. However, the name of the new tax is "Tax payment". Given the tight fence around the cryptography market, which last month saw the application of Normative Instruction No. 1888 (EN 1888), which deals with the obligation to declare movements with cryptography, it would not be exaggerated to imagine that deposits and withdrawals in reais made in exchanges would be adjusted to the movements of the "Payment Tax".

However, this can be very beneficial for Bitcoin, opening the door for yet another movement.
<h2 style="text-align: center">Bitcoin is a silent and peaceful protest</h2>
The 0.4% rate, added to the buy, sell and withdraw exchange rates, may represent a new blow to the encryption market after EN 1888 went into effect. One Brazilian exchange even mentioned strong regulations in its text announcing the closing of its operations.

However, perhaps this is the moment when Bitcoin will begin to be more relevant in Brazil as a store of value, as it has now done in other third world countries, such as Iran. Bitcoin's deposits and withdrawals in exchanges can cancel out the effect of the tax rate on crypto-commerce. While some may only make BTC withdrawals, evading the 0.4% tax on profits is already significant.
<h2 style="text-align: center">Stablecoin with a real base</h2>
In addition to Bitcoin, a stable Real-based currency can gain a wide field of relevance in a scenario where an asset is required to evade the Payment Tax. When it comes to movements within national exchanges, cryptography matched to the value of the Real can be of high relevance.

Stablecoins have emerged as a way of solving the problem of not providing banking services to cryptocurrency exchanges. Serving as a "prankster" of the dollar, have led companies to provide encryption services, despite all the obstacles caused by the traditional financial system.

Learn how CPMF feedback can boost the Bitcoin use

I am an industrial engineer specializing in blockchain. Enthusiast of cryptocurrencies and writing the latest news regarding the Crypto world.

Learn how CPMF feedback can boost the Bitcoin use

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