Brazil and Thailand Take Steps Towards CBDC and Crypto Tax Breaks

The Central Bank of Brazil has announced that it has begun testing its Central Bank Digital Currency (CBDC) project, which is expected to increase financial inclusion for individuals. The project involves individuals buying and selling federal bonds and is expected to be fully operational by 2024. The CBDC will be blockchain-based and backed by customers’ deposits in their bank accounts, meaning banks will not be disintermediated. Meanwhile, the Thai government has announced tax breaks for companies that issue digital tokens for investment purposes, with the potential to bring in $3.71 billion in investment over the next two years. Thailand has also implemented strict regulations for the crypto industry, including banning crypto firms from offering staking and lending services, and introducing stringent regulations for crypto advertising. The move follows the collapse of former crypto exchange giant FTX, and is intended to protect investors.