Rio de Janeiro To Accept Crypto Payments for Taxes Next Year

Rio de Janeiro has announced plans to become the first Brazilian city to accept cryptocurrency payments for taxes starting next year.

Crypto adoption has lately appeared in various forms, but it seems that countries and cities are becoming more open to the idea of allowing certain payments to be made using such assets. The second-largest city in Brazil – Rio de Janeiro – announced it aims to become the first in the country to accept Bitcoin (BTC) payments for taxes.

According to a report, the residents of Rio De Janeiro will be able to pay IPTU (Imposto Sobre a Propriedade Predial e Territorial Urbana) using digital assets as of 2023.

The city officials plan to team up with companies specialized in converting cryptocurrencies into Brazilian real. In other words, once locals transfer the crypto funds, they will be automatically converted into fiat currency.

In January this year, the city’s mayor introduced a working group focusing on how to accelerate the usage of cryptocurrencies to boost the local economy.

The note from the City Hall outlined the creation of a Municipal Committee for Crypto investments (CMCI), which will mitigate risks and develop regulatory frameworks.

The city also is keen to explore the space of the non-fungible tokens (NFTs). Some suggestions emerged to create NFTs with images of tourist attractions.

Brazil has been among the countries with a more positive stance on the digital asset industry, approving the first Bitcoin ETFs last year.

According to a survey from last September, shortly after El Salvador legalized bitcoin, revealed that nearly 50% of Brazilians support the idea of adopting Bitcoin.

Earlier this year, Rio de Janeiro also announced plans to 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.