Rio de Janeiro Eyes Treasury Funding in Crypto and Reductions for Taxes Paid in Bitcoin
Rio de Janeiro Mayor Eduardo Paes has pledged to take a position 1% of the town’s Treasury in cryptocurrencies, per Brazilian information outlet O Globo.
“We’re going to launch Cripto Rio and make investments 1% of the Treasury in cryptocurrency,” Paes reportedly mentioned throughout the Rio Innovation Week in a chat alongside Francis Suarez, Miami Mayor.
O Globo additionally reported that Pedro Paulo, secretary for farming and planning in Rio de Janeiro, and Chicão Bulhões, secretary of financial improvement and innovation, plan to rework the town right into a hub for the crypto trade.
“We’re finding out the potential for paying taxes with an extra low cost for those who pay with Bitcoin,” Paulo mentioned.
“These firms are within the area of Leblon and Ipanema, and we wish to decentralize as a lot as attainable. We have already got tax incentives accepted, we have already got a proportion of two%, which we wish to focus loads on the Porto area for the arrival of those new actors as properly,” mentioned Bulhões.
Final October, Brazil’s legislature had lately accepted a draft invoice that sought to manage digital currencies. Aureo Ribeiro of the Solidariedade Occasion proposed an replace to the invoice that sought to offer Bitcoin authorized standing as “fee forex.”
Rio de Janeiro vs. Miami
In February of final yr, the Metropolis of Miami handed a proposal to evaluate whether or not to place a few of the metropolis’s reserves into Bitcoin.
Miami Mayor Suarez—who’s extraordinarily bullish on Bitcoin—mentioned on the time that “we’re on the cusp of seeing a significant titanic shift on this. It’s an trade that’s boisterous, vociferous, and rising, and this might ship the best sign.”
Thus far, nevertheless, Miami has not made this plan official. Ought to Rio de Janeiro’s 1% funding plan contain Bitcoin, the Brazilian crypto hub could overtake Miami’s ambitions.