Brazilian City Rio de Janeiro Will Invest 1% Of Its Treasury In Crypto Assets
Rio de Janeiro, the third largest city in Brazil, will invest part of its Treasury in cryptocurrencies. The city is also planning turn itself into a crypto-friendly hub that would have other tax incentives.
Rio de Janeiro, will reportedly invest some of its treasury funds into cryptocurrency, according to statements from mayor Eduardo Paes. He made the announcement during a joint lecture with the mayor of Miami, Francis Suarez, at the Rio Innovation Week, an event that deals with the modernization of the city.
Paes stated:
“We are going to launch Crypto Rio and invest 1% of the Treasury in cryptocurrency.”
According to Suarez the same development in Miami created opportunities for investors while offering crypto tax incentives. He noted:
“We created a tsunami of opportunity. Many cities in the United States were raising taxes, and we lowered them. We understood that we could be at the forefront of innovation and we invited creators here.”
Tax Incentives and Regulation
Following Miami lead, Paes is also planning to establish tax incentives and discounts to encourage bitcoin payments. Finance Secretary Pedro Paulo said they are looking into offering a 10% discount for using bitcoin in paying certain taxes. However, he also stated that they first need to further study the regulations on how to apply these changes effectively.
Chicão Bulhões, secretary of the economic development and innovation team, said that these tax incentives are aimed to attracting more companies involved with cryptocurrency from other regions of the country. Bulhões explained:
“We already have tax incentives approved, we already have a percentage of 2%, and we want to focus a lot on the Porto region for the arrival of these new actors as well.”
Regulation of cryptocurrency in the country is still on-going. A bill has been approved for discussion by the Senate this year. The bill 2.303/15, could make bitcoin currency in Brazil as its main proposer, Deputy Aureo Ribeiro, said earlier.
