Brazil’s Rio Treasury to have 1% Crypto: Eduardo Paes

The Mayor of Brazil’s Rio de Janeiro Mr. Eduardo Paes has revealed that it might start holding crypto in its treasury.

According to the newspaper O Globo, Mayor Eduardo Paes made the announcement during an event also attended by another pro-crypto mayor, Miami’s Francis Suarez. The duo was speaking about the challenges involved in transforming metropolises into technological hubs.

Brazil's Rio De Janeiro
Rio De Janeiro

What did Brazil’s Rio De Janerio Mayor Paes Said

Paes was quoted as stating that Brazil’s city Rio was “going to launch” an incentive named “Cripto Rio” and “invest 1% of the treasury in cryptocurrency.” Paes also said he would publish a decree to establish a working group to tackle the topic of crypto.

The media outlet quoted two Rio officials – Pedro Paulo, from the Finance Department, and Chicão Bulhões, of the Economic Development and Innovation team – as telling it about the Mayor’s plans to “transform the city into a cryptocurrency hub.”

Paulo was quoted as stating:

“We are studying the possibility of [allowing citizens to] pay taxes with an additional discount if they pay in bitcoin (BTC).”

He added that Urban Building and Land Tax (property tax) discounts could be boosted should citizens choose to pay their bills in BTC and that the city was now “studying the legal framework” to facilitate such a move.

Bulhões, meanwhile, claimed that Rio could become “a pioneer” city, and spoke of wider, citywide adoption plans.

The Mayor, meanwhile, also spoke about transforming the city’s Porto Maravalley district into a tech hub by offering “tax incentives” for companies working in the IT sector.

And while Rio’s latest move may not be as radical as El Salvador’s decision to adopt bitcoin as legal tender, it appears to show that local governments and sovereign states are not above following the advice of international financial advisors – and diversifying their portfolios to include crypto assets.

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