Brazil’s second most populous city Rio de Janeiro‘s mayor, Eduardo Paes, with 1% of the city’s treasury reserves Bitcoin (BTC) He said he was ready to receive it. If the president can make his intentions come true, Rio will be the first Brazilian city to buy ‘crypto’ as a store of value.
📢 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 tax payments with Bitcoin
In addition to buying Bitcoin with the city’s reserves, the mayor also talked about some tax breaks for taxpayers who will pay in Bitcoin. For those who choose to pay with Bitcoin, a 10% discount on taxes such as the urban building or land tax (IPTU) is available.
IPTU, a federal and urban property tax, is collected by municipalities in Brazil. The tax is calculated on the estimated selling price of the property.
Employees will be paid with Bitcoin!
Before Eduardo Paes, Brazilian congressman Luiz Goularte had proposed a bill in November 2021. The bill proposed paying public and private sector employees in Bitcoin; The law recommended that workers choose a certain portion of their salary in Bitcoin and fiat currency. The bill said the employer must accept the proposed move.
Effects on the city of Rio de Janeiro
The 52-year-old Brazilian Social Democratic Party member presented his plans at Rio Innovation Week and to Miami Mayor Francis Suarez. The move could benefit the city as it could attract international crypto investors, and particularly companies operating in the Bitcoin ecosystem. The president also talked about holding a working group to discuss the city’s crypto-related policies.
Suarez has been a staunch supporter and supporter of Bitcoin in the past. He launched his city’s crypto, the Bitcoin-based Miami Coin, whose profits are then distributed among the city’s residents. Following Suarez’s ideas and initiatives, Eduardo plans to turn Rio into a cryptocurrency hub in the country.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.