Rio de Janeiro mayor Eduardo Paes talked about Bitcoin with Miami mayor and BTC bull Francis Suarez at Rio Innovation Week
Rio de Janeiro, Brazil’s most popular tourist destination, now wants to become the country’s cryptocurrency capital, with plans to devote a portion of its reserves to digital currency. Rio mayor Eduardo Paes announced the formation of a working committee on Friday to look at methods to encourage the use of cryptocurrency and strengthen the city’s economy, such as granting discounts when paying taxes using BTC.
“We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play,” Paes reportedly said, adding that the state is also planning to introduce tax exemptions for the industry. While Miami has positioned itself as the cryptocurrency center of the USA, Rio aims to become the South American hub for the digital asset industry, Paes asserted: “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.”
The goal is to replicate Suarez’s Miami activities and turn Rio into a crypto hub for the country. In addition, the mayor said that people who pay with Bitcoin will receive a 10% discount on taxes such as urban building or land tax (IPTU). In Brazil, an IPTU tax is a federal tax that applies to urban property. The municipality collects the tax, which is based on the property’s considered sale price. El Salvador was the first country to buy bitcoin on its balance sheet last year. At current pricing, the Central American country has roughly 1,390 bitcoins, which are worth over $58 million.
