Around the globe, numerous governments and institutions are investigating the advantages of Bitcoin. Conversations about integrating Bitcoin reserves at the national level are prevalent. In Brazil, however, the approach to cryptocurrency adoption stems from a workers’ perspective, highlighted by a proposed bill allowing employees to receive as much as 50% of their salary in cryptocurrency.
The Bill PL 957/2025
On March 12, 2025, Luiz Philippe de Orleans e Bragança, a federal deputy and an heir of the Brazilian royal lineage, introduced the bill PL 957/2025. This legislation aims to empower Brazilian workers to request their salaries to be paid in cryptocurrency.
The stipulation is that at least half of the salary must be disbursed in Brazilian real, which is the nation’s only legal tender. Notably, there are exceptions: expatriates and remote foreign workers may receive their entire salary in cryptocurrency as regulated by the Central Bank of Brazil. Other employees can also receive a full crypto salary, but only if compensated through special contracts by private service providers.
The exchange rate for the cryptocurrency must adhere to the rate designated by the Central Bank of Brazil, and employers are mandated to furnish workers with a detailed statement summarizing the gross salary in Brazilian real, the portion of compensation provided in cryptocurrency, the conversion rate, along with any applicable fees, deductions, or bonuses. Tax implications will remain consistent with those applicable if the payment were made in Brazilian real. Additionally, matters like the 13th salary and paid leave will remain unaffected if an employee opts to receive payment in cryptocurrency. The bill also includes safeguards against potential fraud or price manipulation by employers.
Moreover, the bill mandates that employers supply employees with comprehensive educational resources about virtual assets. This includes information on the risks related to cryptocurrency use, strategies to prevent fraud, securing crypto holdings, and practical training on converting cryptocurrency to fiat currency and vice versa.
What is the aim of this bill?
The objectives of the bill are multiple, some of which are articulated within the legislative text itself, while others are highlighted by media, lawmakers, and experts. According to the bill’s wording, it “aims to align the national legal framework with innovations and the evolving dynamics of the digital marketplace, ensuring the security of both employers and employees who wish to voluntarily embrace this form of compensation.”
The current Brazilian labor laws, as stated in the bill, do not adequately reflect the increasing adoption of cryptocurrencies. By requiring that a minimum of 50% of remuneration be dispensed in Brazilian real, the bill seeks to create a framework of predictability and financial stability, permitting both employers and workers to explore the use of modern digital assets while fostering individual freedom and innovation. If passed, this legislation would enable workers to choose the payment method that best suits them without imposing restrictive measures.
The bill points to Japan, Switzerland, and Portugal as examples of countries where cryptocurrencies are legally utilized. Interestingly, none of these nations has opted to establish a Bitcoin reserve; instead, initiatives include accepting cryptocurrency for tax payments in the Zug canton of Switzerland, enabling crypto transactions for electricity bills by the Portuguese energy company Luzboa, and allowing digital payments in Japan’s large marketplace, Mercari. This reflects how different nations adopt cryptocurrency uniquely. The sponsor of the bill believes it is crucial for Brazil to join the cryptocurrency movement promptly, suggesting that this new law could enhance Brazil’s fintech landscape and draw in international talent.
Some media outlets discussing the legislation have highlighted potential advantages, such as lowering transaction fees and reducing inflation as benefits of this proposed framework.
Political Context
Brazil stands as the tenth-largest economy in the world. Timely adoption of cryptocurrency is vital for maintaining its leadership role in Latin America and ensuring its competitiveness globally. The regulatory environment for cryptocurrency in Brazil is relatively welcoming but still needs further clarity. Various legislative initiatives are underway, including considerations for establishing a sovereign Bitcoin reserve.
While the bill may not directly influence Brazil’s external policies, it resonates with Brazil’s recent proposal to treat cryptocurrencies as a medium of exchange among BRICS nations. The use of cryptocurrencies (including stablecoins and CBDCs) aims to challenge the dominance of the U.S. dollar in international trade and promote the BRICS bloc’s economic autonomy from the United States.
Russian entities are already leveraging cryptocurrency, citing its ease of use and cost-effectiveness as key benefits, particularly for circumventing Western sanctions. This experience could further reinforce the bloc’s ambition to transition international trade onto blockchain technology.