The mayor of Rio de Janeiro, Eduardo Paes, plans to invest 1% of the treasury budget in cryptocurrencies. The city could also give discounts for taxes paid in Bitcoin (BTC).
Rio de Janeiro could buy cryptocurrencies
Rio de Janeiro Mayor Eduardo Paes has pledged to invest 1% of the city’s public treasury in cryptocurrencies, according to Brazilian media outlet O Globo. Speaking at Rio’s Innovation Week, the Brazilian city official said:
“We are going to launch Crypto Rio and invest 1% of the public treasury in cryptocurrencies.”
Pedro Paulo, Secretary of Finance, explained at the event that Rio de Janeiro is studying the possibility of accepting BTC payments for property tax. Residents opting for this payment method will receive a discount.
The Urban Property Tax (IPTU) is a property tax in Brazil collected by local municipalities. It is paid annually by the owner of a house, building or land. If Rio de Janeiro succeeds in its project, it will become the first Brazilian city to hold cryptocurrencies on its balance sheet.
Miami as an example?
In February 2021, the city of Miami passed a proposal to judge whether to place a portion of the city’s reserves in BTC. Miami Mayor Francis Suarez, who is particularly fond of Bitcoin, said at the time that he wanted to allocate 1% of the city’s reserves to Bitcoin. However, Miami has yet to make this official.
Francis Suarez has chosen to collect his salary in Bitcoin rather than in dollars. He is the first American politician to be paid in cryptocurrencies. He also intends to allocate part of his retirement savings to BTC.
At the end of 2021, the Miami city government also offered $100 of Bitcoin to a handful of students. They also received $100 of MiamiCoin, the city’s own cryptocurrency.
