According to Mayor Eduardo Paes, Rio de Janeiro is all set to buy Bitcoin. The city wants to invest 1% of its reserves. Rio will be the first-ever Brazilian city to buy crypto as a store of value.
Discount on tax payments with Bitcoin
In addition to buying Bitcoin with the city’s reserves, the mayor also talked about some tax benefits for paying with Bitcoin. For those who choose to pay with Bitcoin, he gave a 10% discount on taxes. This includes, for example, the urban construction or land tax.
📢 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
Before Eduardo Paes, Brazilian Congresswoman Luiz Goularte had introduced a bill in November 2021. The bill made it possible for public and private sector workers to be paid in Bitcoin. The bill proposed that employees could choose how much percent of their salary they wanted to receive in Bitcoin. The employer must then agree to the proposed motion. According to the bill.
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Consequences for the city of Rio de Janeiro
The 52-year-old member of the Social Democratic Party of Brazil presented his plans during the Rio Innovation Week. The move could benefit the city. Indeed, it would attract international crypto investors and in particular companies that are active in the Bitcoin ecosystem. He also mentioned creating a working group to discuss the city’s crypto-related policies.
Suarez himself has been a staunch supporter and promoter of Bitcoin in the past. He launched his city’s crypto, Bitcoin-based Miami Coin, whose profits were then distributed among the city’s residents. Eduardo plans to make Rio a crypto hub in the country, following Suarez’s ideas and initiatives.
