Rio de Janeiro is planning to acquire Bitcoin using 1 percent of the city’s treasury reserves, according to Eduardo Paes, the mayor. If Eduardo goes through with what he claims, Rio will be the first Brazilian city to buy cryptocurrency as a store of value.
Tax payments benefits with Bitcoin
The mayor indicated potential tax savings for payments using Bitcoin, in addition to acquiring it with the city’s reserves. Individuals who pay with Bitcoin should receive a 10 percent discount on taxes such as the urban building or land tax, he suggested (IPTU).
Municipalities in Brazil collect IPTU, a federal and municipal property tax. It’s based on the expected sale price of the property.
Wages in Bitcoin
Before Eduardo Paes, Luiz Goularte, a Brazilian politician, introduced a proposal in November 2021. The bill allowed public and private sector workers to be paid in bitcoin, with workers being able to select between bitcoin and fiat cash as a percentage of their wage. The proposed move must be approved by the employer, according to the bill.
What will be its effect on Rio de Janeiro ?
The bill has the potential to assist the city by attracting foreign crypto investors and, in particular, businesses involved in the Bitcoin ecosystem. The plan is to make Rio de Janeiro a crypto hub in the country.
It’s a wrap for this story. Have a good day, reader.
