Eduardo Paes – the mayor of Rio de Janeiro – intends to allocate 1% of the city’s treasury in bitcoin. If he continues, the megalopolis will become the first Brazilian city to buy the leading cryptocurrency as a store of value.
Rio will jump on the BTC bandwagon
Mayor Eduardo Paes outlined his plans during Rio Innovation Week as he discussed the topic at a conference with bitcoin-loving Miami Mayor Francis Suarez.
“We will launch Crypto Rio and invest 1% of Treasury in bitcoin,” Paes said.
The 52-year-old Brazilian Social Democratic Party member praised Suarez’s efforts to turn Miami into a cryptocurrency hub. The latter has previously said he is open to exploring the idea of putting 1% of his city’s treasury reserves into bitcoin.
While Miami has positioned itself as the cryptocurrency center of the United States, Rio aims to become the South American hub for the digital asset industry, Paes asserted:
“Rio de Janeiro has what it takes to become the technology capital of South America. Events like Rio Innovation Week reinforce the city’s image as a great place to work, live and innovate.
The eventual adoption of bitcoin is seen as an important step for the development of the leading cryptocurrency since Rio de Janeiro is the financial heart of Brazil. Its economy is also one of the largest in the Latin American region and one of the most dynamic in the world.
In line with bitcoin investing, Mayor Paes is looking to offer a 10% discount on taxes when paid in the leading digital asset. Last year, the Miami leader displayed similar intentions by saying he would allow residents to pay taxes in BTC instead of US dollars.
Government employees in Brazil will receive salaries in BTC
Eduardo Paes is not the first Brazilian politician to express his sympathy towards the main cryptocurrency. In November 2021, Congressman Luiz Goularte Alves proposed a bill allowing public and private sector workers to be paid in bitcoins.
“This law establishes that part of the worker’s remuneration may, optionally, be realized by means of cryptocurrencies,” read the first lines of the proposal.
According to the bill, employees could choose the exact percentage of their salary they want in crypto and fiat currency. The employer must respectively accept the proposed motion.
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