Rio de Janeiro Eyes Treasury Investment in Crypto and Discounts for Taxes Paid in Bitcoin
The mayor of Rio de Janeiro, Eduardo Paes, announced that the Brazilian city would be investing 1% of its Treasury in crypto. Read the full article by Scott Chipolina “Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.”
2021 was a huge year for crypto in terms of adoption. It was talked about a lot and El Salvador made it an official currency in the country allowing its citizens to pay for things like taxes and mortgages in Bitcoin. Crypto and blockchain will continue to make their way into the mainstream especially if big institutions and countries continue to stock up as well.
The mayor of Rio de Janeiro, Eduardo Paes, is getting involved now also by pledging to invest 1% of the cities treasury in cryptocurrencies. Paes even went as far as to say “We are going to launch Cripto Rio and invest 1% of the Treasury in cryptocurrency.”
The plan of the secretary for economic development and innovation, Chicão Bulhões, wants to take it a step further and make Rio de Janeiro a hub for the entire crypto industry. One possibility to incentivize the actual use of Bitcoin in the country is that citizens will receive a discount on their taxes if they pay it in BTC. “These companies are in the region of Leblon and Ipanema, and we want to decentralize as much as possible. We already have tax incentives approved, we already have a percentage of 2%, which we want to focus a lot on the Porto region for the arrival of these new actors as well,” said Bulhões.
Many countries are exploring ways to implement blockchain to advance their financial technologies with just one example being the creation of CBDCs. In the US we now have two cities New York and Miami that will be using their own tokens, made by the City Coins project, to fund infrastructure improvements in the cities. There are many ways that blockchain can help the growth of nations it is just a matter of time before it is widely used and adopted.