Bitcoin gains institutional adoption in Brazil: Rio de Janeiro to invest 1% of reserves in crypto

Key Takeaways

• The Mayor of Rio de Janeiro Eduardo Paes has announced plans to invest 1% of city’s reserves in Bitcoin
• The second-most populated city in Brazil plans to become a cryptocurrency hub in the continent

YEREVAN (CoinChapter.com)- As cryptocurrencies continue to get endorsements from celebrities, organizations, and politicians, a major city has joined the crypto bandwagon. Eduardo Paes, the mayor of Rio de Janeiro plans to invest 1% of the city’s Treasury in Bitcoin (BTC). If his plans come to fruition, Rio will become the first city in the country to purchase Bitcoin (BTC).

Eduardo Paes seems to be following in the footsteps of El Salvadoran president Nayib Bukele. The leader of the Central-American Republic has been actively investing a part of the country’s treasury in Bitcoin (BTC).

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Mayor of Rio announces Bitcoin (BTC) plans

Rio de Janeiro mayor Eduardo Paes announced plans to invest the city’s treasury in BTC at the Rio Innovation Week. He wants to transform his city into the cryptocurrency capital of Brazil. Rio de Janeiro is the former capital of the South-American country.

Paes was sharing the stage with the mayor of Miami, Francis Suarez. The Miami Mayor is one of the most vocal supporters of cryptocurrencies in the field of politics. He has since opted to receive his paycheck in crypto. Additionally, he has vowed to provide residents with “Bitcoin yield” after creating a digital wallet. Miami has its own cryptocurrency, called MiamiCoin. 

“We are going to launch Crypto Rio and invest 1% of the Treasury in cryptocurrency,” 

Paes announced. 

Last year, the mayor of Miami had also announced his intention to invest a portion of the city’s reserves in Bitcoin. However, so far the city has not bought Bitcoin using the treasury.

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Rio authorities to give additional discounts to Bitcoin adopters

The Rio authorities are even planning to offer perks to those using BTC to make payments. Local authorities may offer a discount on property taxes if paid with Bitcoin.

 “We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins. You take the discount of the single quota of 7% (of the IPTU), it becomes 10% if you pay in bitcoin,”  

Pedro Paulo, secretary of finance and planning of Rio de Janeiro said.

The city will also offer tax incentives to companies in the cryptocurrency sector to help attract investments. 

Miami has established itself as the cryptocurrency center of the USA. Rio de Janeiro wants to become the hub of cryptocurrencies in South America. 

“Rio de Janeiro has everything it takes to become the tech capital of South America. Events like the Rio Innovation Week come to strengthen the city’s image as the perfect place to work, live, and innovate.”  

Paes claimed.

Two months back in November 2021, Brazilian congressman Luiz Goularte Alves tabled a bill to allow workers in the public and private sector to opt to be paid in Bitcoin (BTC). 

With 48% of citizens in Brazil agreeing the country should adopt Bitcoin (BTC) as its currency, the decision by the Rio leadership will help BTC further gain institutional adoption by another major economy. 

At the time of writing, Bitcoin (BTC) is trading at $43,162.89 against the USD. The leading cryptocurrency in the world is about $7,000 lower than its price two days ago.