The city’s mayor, Eduardo Paes, said that Brazil’s second most populous city, Rio de Janeiro, is willing to buy Bitcoin with 1% of the city’s treasury reserves. Rio will be the first Brazilian city to buy cryptocurrency as a store of value if Eduardo continues what he says.
📢 Breaking news: Rio de Janeiro in Brazil will allocate 1% of the city’s reserves to #Bitcoin pic.twitter.com/zEgWUbUTPc
– Cryptocurrency News (@CryptoBoomNews) January 14, 2022
Discount on paying taxes with bitcoin
Besides buying Bitcoin with the city’s reserves, the mayor also talked about some tax breaks when paying via Bitcoin. For those who choose to pay via Bitcoin, he mentioned a 10% discount on taxes, such as municipal construction tax or land tax (IPTU).
IPTU, federal property tax and municipal property tax, collected by municipalities in Brazil. It is calculated on the alleged sale price of the property.
Employees are paid in Bitcoin!
Before Eduardo Paes, Brazilian congressman Luiz Goularte proposed a bill in November 2021. Bill to allow public and private sector workers to be paid in bitcoin — the bill proposed that workers choose the rate percentage of their salary in bitcoin and fiat. Employers must agree to the proposed proposal, the bill said.
Impact on the city of Rio de Janeiro
The 52-year-old Brazilian Social Democratic Party member presented his plan at Rio Innovation Week and Miami Mayor Francis Suarez. The move could benefit the city as it could attract international crypto investors and especially companies operating within the Bitcoin ecosystem. He also mentioned setting up a working group to discuss the city’s crypto-related policies.
Suarez himself has been an ardent supporter and promoter of Bitcoin in the past. He launched his city’s cryptocurrency, Bitcoin-based Miami Coin, the profits of which were then distributed to the residents of the city. Eduardo plans to make Rio a crypto hub in the country following the ideas and initiatives of Suarez.