In Brief:
- Eduardo Raes, the mayor of Rio de Janeiro pledged to put 1% of the treasury in bitcoin.
- The aim is to transform the city into a hub for the crypto industry.
- Mayor also plans on providing a 10% discount on taxes when paid in bitcoin.
Eduardo Paes, the mayor of Rio de Janeiro plans to allocate 1% of the city’s treasury in bitcoin. With this investment, the megapolis will become the first Brazilian city to purchase the primary cryptocurrency as a store of value.
The mayor disclosed his plans at Rio Innovation Week in a talk alongside Francis Suarez, Miami Mayor. Suarez recently declared to put a part of his 401k in bitcoin and hinted that Miami residents would soon be able to pay municipal fees in bitcoin in the future. Now, Rio mayor Eduardo Paes hopped on the bitcoin bandwagon in an effort to transform the city into a crypto hub.Â
Paes also stated that Rio de Janeiro has everything it takes to emerge as the tech capital of South America. He emphasized that events like Rio Innovation Week strengthen the city’s image as the perfect place to live, work and innovate. He also plans on providing a 10% discount on taxes when paid in bitcoin.
Pedro Paulo, secretary for farming and planning in Rio de Janeiro, along with Chicao Bulhoes, secretary of economic development and innovation, confirmed the plan to transform the city into a hub for the crypto industry.
Bulhoes also mentioned that these companies are in the region of Ipanema and Leblon and we are aiming to decentralize as much as possible. Interestingly, the city is considered the financial heart of Brazil. Its economy is also one of the largest in the Latin American region and the possible bitcoin adoption is a massive step in its growth globally. |
Paes announcement comes at a time when crypto adoption is growing in Brazil. Last December, Brazil’s only stock exchange B3 revealed its plan to enter the crypto market. Not only that, Mercado Pago collaborated with Paxos to launch a service that allows Brazilians to hold, buy and sell cryptocurrencies. It’s fair to say that cryptocurrencies are on their way to becoming mainstream in Brazil this year.
