Rio De Janeiro has said that it will allow cryptocurrency as a mode of payment for property taxes. According to an article released on the 25 March 2022, by Bloomberg Lnea, Rio de Janeiro, Brazil’s second-largest city, will allow residents to pay property taxes with cryptocurrencies starting in 2023. Rio will be the first city in the country to allow a crypto as way of tax payment.
According to a memo from Rio de Janeiro City Hall, the city would contract various firms to convert cryptocurrency into Brazilian reals. The statement is an extension of Mayor Eduardo Paes’ working committee, which was formed in January of this year to look into methods to stimulate the usage of cryptocurrencies and strengthen the city’s economy. In addition to the announcement, During a conversation with Miami Mayor Francis Suarez, Mayor Paes declared his plan to invest 1% of the city’s money in cryptocurrency.
However, according to the current announcement, a Municipal Committee for Crypto-Investments (CMCI) will be established to develop and refine a methodology based on risk and profitability analysis. This is to allow for the investment of resources in crypto assets while adhering to the CVM and central bank’s guidelines.
Rio joins list of places to allow tax payment through cryptocurrency
As reported by TWJ, earlier in the week, Florida Governor, Ron DeSantis had expressed interest in allowing cryptocurrencies to be used to pay state taxes. During a news appearance in Wesley Chapel, where he signed a measure requiring financial literacy instruction into law, the governor made the remarks. Personal financial education is now a requirement for high school graduation.
The governor said he included some funds for blockchain technology experimentation in his proposed budget, but the initiative was not included in the appropriations for the coming fiscal year. Rio seems to be following the same trend.
Furthermore, Rio also intends to create its own non-fungible tokens with photos of Rio de Janeiro’s most popular tourist attractions. According to Pedro Paulo, the city’s secretary of finance and development, the idea is to use NFTs to boost tourism and motivate local artists.