Rio de Janeiro is one of Brazil’s largest cities. It will use part of its Treasury to invest in cryptocurrency. Eduardo Paes (the mayor of Rio) made the announcement during Rio Innovation Week. The plan is to turn the city into a cryptocurrency-friendly hub, and there are other tax incentives that will also be put in place to achieve this objective, according to reports.
Rio De Janeiro to Invest in Cryptocurrency
According to Eduardo Paes, Rio de Janeiro is one of Brazil’s largest cities. It will invest some of its money in cryptocurrency. Mayor Eduardo Paes made this announcement at Rio Innovation Week. This event focuses on modernizing the city.
Paes declared:
Crypto Rio will be launched and 1% of Treasury funds will go to cryptocurrency.
Suarez also founded Miamicoin (a cryptocurrency that serves the city of Miami), and stated that this development created new opportunities for investors as well as offering tax incentives for crypto-taxes. He declared:
The result was a flood of opportunities. There were many places in America that raised taxes. We reduced them. Because we believed we could lead innovation, we invited innovators to come here.
Regulating and Incentives for Tax Compliance
Paes will also be following the example of Miami by offering tax incentives and discounts to users who use bitcoin. Pedro Paulo, the Finance Secretary explained that they plan to offer 10% discounts for those who use bitcoin to pay specific taxes. But, he said it was important to study the regulations in order to implement these changes efficiently.
Chicão Bulhões, secretary of the economic development and innovation team, stated that these tax incentives were focused on attracting more companies involved with cryptocurrency from other regions of the country. Bulhões remarked:
Tax incentives are already approved. The percentage is already 2%. And we will be focusing a lot more on the Porto area for these new players.
The regulation of cryptocurrency is a continuing matter. A recent bill was approved by the Senate for consideration this year. As its principal proposer, Deputy Aureo Rbeiro stated last year, this bill (2.303/15), could create bitcoin currency in Brazil.
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