Rio de Janeiro, Brazil’s second-largest city, is planning to acquire Bitcoin using 1% of the city’s treasury reserves. This is ccording to Eduardo Paes, the mayor. If Eduardo goes through with what he claims. Then, Rio will be the first Brazilian city to buy cryptocurrency as a store of value.
In addition to purchasing Bitcoin with the city’s reserves, the mayor mentioned potential tax benefits for paying with Bitcoin. He recommended granting a 10% discount on taxes, such as the urban building or land tax, to individuals who pay with Bitcoin (IPTU).
In Brazil, municipalities collect IPTU, a federal and urban property tax. It’s based on the property’s estimated sale price.
Before Eduardo Paes, Luiz Goularte, a Brazilian politician, introduced a measure in November 2021.
The measure allowed public and private sector workers to be paid in bitcoin, with workers being able to select between bitcoin and fiat cash as a percentage of their wage. According to the bill, the proposed motion must be approved by the employer.
The city of Rio de Janeiro is affected.
The 52-year-old member of Brazil’s Social Democratic Party presented his intentions to the Mayor of Miami, Francis Suarez, at Rio Innovation Week.
The move could assist the city by attracting foreign crypto investors and, in particular, businesses involved in the Bitcoin ecosystem. He also discussed forming a working group to talk about the city’s crypto regulations.