Rio de Janeiro’s mayor, Eduardo Paes, proposes to allocate 1% of the city’s Treasury in bitcoin. If he goes ahead, the megacity will be the first in Brazil to buy the principal cryptocurrency as a store of value.
Mayor Eduardo Paes addressed his ambitions at Rio Innovation Week in a lecture with Miami Mayor Francis Suarez, who is a bitcoin enthusiast.
“We are going to launch Crypto Rio and invest 1% of the Treasury in bitcoin,” Paes said.
Suarez’s efforts to make Miami into a bitcoin hub were lauded by the 52-year-old member of Brazil’s Social Democratic Party. Previously, the latter stated that he is open to the notion of placing 1% of his city’s Treasury reserves in bitcoin.
While Miami has established itself as the United States’ cryptocurrency capital, Rio hopes to establish itself as the digital asset industry’s South American headquarters. Paes declared:
“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.”
Because Rio de Janeiro is Brazil’s financial capital, the possibility of bitcoin adoption is seen as a significant step forward for the cryptocurrency’s development. It also has one of the largest economies in Latin America and one of the fastest-growing economies in the world.
Mayor Paes wants to offer a ten percent tax discount if taxes are paid in the leading digital asset, in line with the bitcoin investment. Last year, Miami’s mayor expressed similar ambitions, stating that citizens would be able to pay taxes in BTC rather than US dollars.
Eduardo Paes isn’t the first politician in Brazil to declare support for the main cryptocurrency. Congressman Luiz Goularte Alves introduced a bill in November 2021 that would allow public and private sector employees to be paid in bitcoin.
“This Law establishes that part of the remuneration of the worker can, optionally, be made through cryptocurrencies,” the first lines of the proposal read.
Employees would be able to choose what percentage of their salary they want to be in crypto and what percentage they want to be in fiat currencies, according to the bill. The proposed motion must be approved by the employer.