Brazilian mayor to reportedly invest 1% of city reserves in Bitcoin

Eduardo Paes, mayor of Brazilian city Rio de Janeiro, needs to allocate 1% of the city’s treasury into Bitcoin (BTC), Cointelegraph Brazil reported.

Paes reportedly introduced plans for “Crypto Rio,” or turning the city right into a cryptocurrency hub throughout Rio Innovation Week on Thursday, in accordance to a report by native information company O Globo.

The mayor spoke about Rio’s cryptocurrency-related ambitions in a panel with Miami mayor and Bitcoin bull Francis Suarez, who began accepting his paychecks in BTC in November 2021.

“We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play,” Paes reportedly mentioned, including that the state can be planning to introduce tax exemptions for the business.

The panel additionally included main Brazilian officers like city finance secretary Pedro Paulo, who famous that the administration is contemplating a ten% low cost on property tax in Brazil on funds with Bitcoin. “Let’s study the legal framework to do this,” he mentioned.

Related: ‘Mecca of mining’: Brazil considers zero tax on inexperienced Bitcoin mining

The information comes amid the Brazilian authorities more and more warming its stance on Bitcoin and the cryptocurrency business, with federal deputy Luizão Goulart proposing a invoice to legalize crypto as a fee technique for private and non-private sector employees in November. In December, MercadoPago, a serious crypto fee agency in Brazil, enabled Brazilian residents to purchase, promote and maintain main cryptocurrencies like BTC and Ether (ETH).