The city mayor plans to turn Rio de Janeiro into “Crypto Rio,” aiming to become a cryptocurrency hub
Rio de Janeiro Mayor Eduardo Paes announced his proposal yesterday at Rio Innovation Week to allocate a portion of the city treasury to cryptocurrency. Speaking alongside Miami Mayor Francis Suarez, Paes said the city would invest 1% of its cash reserves in Bitcoin.
“We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play,” he said.
Paes, a member of the Brazilian Social Democracy Party, added that the city will establish a working group to address cryptocurrency-related issues. He also said Rio has strong potential to become South America’s leading tech city.
“Rio de Janeiro has everything it needs to become the tech capital of South America. Events like Rio Innovation Week help strengthen the city’s image as a great place to work, live and innovate.”
If the plan succeeds, Rio de Janeiro would become the first Brazilian city to hold a Bitcoin treasury reserve.
Additional tax discount
At the same event, Pedro Paulo, Rio’s Secretary of Finance and Planning, said the city is considering accepting tax payments in Bitcoin, coupled with an incentive.
“We are studying the possibility of paying taxes with an additional discount if you pay in Bitcoin. The single quota discount of 7% would be increased to 10% if you pay in Bitcoin,” he explained.
IPTU, the urban building or land tax, is an annual municipal tax levied on houses, buildings and land in Brazil. Paes praised Miami’s mayor for his efforts to position that city as a cryptocurrency hub.
Following Miami’s lead
Paes’s move appears influenced by Miami Mayor Francis Suarez. In December 2020, Suarez said a portion of Miami’s reserves would be invested in Bitcoin. He reiterated in October that the initiative remained a priority, though few concrete steps had been taken. Last November, Suarez said he would take his salary in Bitcoin in a tweet responding to Antony Pompliano.
Brazil gradually embracing cryptocurrencies
Brazil has been slowly moving toward wider adoption of digital assets. In November, Congressman Luiz Goulart Alves introduced a bill to recognize cryptocurrencies as an optional payment method for workers. One month later, Mercado Pago, a local payments provider, began allowing customers to trade major crypto assets.
“This law establishes that a portion of a worker’s compensation may, optionally, be paid via cryptocurrencies,” the bill’s text stated.
Alves’s proposal would allow public and private sector workers to designate the portion of their paycheck they wish to receive in cryptocurrency.