The city of Rio de Janeiro will invest 1% of its budget in bitcoin

Mayor Eduardo Paes of Rio de Janeiro proposes to spend 1% of the city’s budget in BTC. If the initiative is successful, Megapolis will become the first Brazilian city to acquire the underlying cryptocurrency as a store of value.

Rio De Janeiro is a city located in the state of Rio de Janeiro, Brazil. It is one of the most visited cities in the world with over 5 million visitors each year. Rio De Janeiro is known for its turquoise beaches, world-famous Carnival, and the Christ statue that stands on top of Corcovado mountain.

Mayor Eduardo Paes unveiled his plans for Rio Innovation Week, discussing the topic during a lecture with BTC bull and Miami Mayor Francis Suarez. Paes said:

We will start Crypto Rio and allocate one per cent of our treasury towards bitcoin investments.

Suarez’s attempts to transform Miami into a cryptocurrency centre have been hailed by a 52-year-old member of Brazil’s Social Democratic Party. The latter has previously said that he is willing to investigate the possibility of putting 1% of his city’s reserves in the bitcoin.

While Miami is positioning itself as a cryptocurrency hub in the U.S., Rio aims to become the South American hub for the digital asset sector:

Rio de Janeiro has all you need to become South America’s technology powerhouse. Rio Innovation Week helps to solidify the city’s reputation as a great destination to work, live, and develop.

The possible adoption of bitcoin is considered a massive step for developing the underlying cryptocurrency, as Rio de Janeiro is the financial heart of Brazil. Its economy is also one of the largest Latin American regions and fastest-growing globally.

Mayor Paes intends to give a 10% reduction on taxes paid at a popular digital asset in addition to the bitcoin investment. Last year, Miami’s mayor had similar ambitions, stating that people would be able to pay taxes in Bitcoin instead of dollars.

Brazil’s government will pay salaries in BTC

Eduardo Paes is not the first politician from Brazil to support bitcoin, which is the world’s most popular cryptocurrency. Representative Luiz Goularte Alves introduced legislation in November 2021 to enable public and private sector workers to receive their salaries in BTC. In the first lines of the proposal, we read:

This regulation says that cryptocurrencies may be used to pay a portion of an employee’s wage.

According to the law, employees might determine how much of their wage is paid in cryptocurrencies and how much is paid in fiat currencies. On the other hand, the employer must assent to the proposed request in the appropriate manner.

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