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According to its Mayor Eduardo Paes, Rio de Janeiro is expected to be the first Brazilian city to buy Bitcoin as a store of value. In addition, the city administration is looking to offer discounts for those who pay taxes with Bitcoin.
Oglobo.Globo reports the Mayors of Rio and Miami Mayor Francis Suarez participated on the first day of the largest innovation and technology meeting in Latin America.
Francis Suarez is the Mayor of one of the most important cities in the United States and a declared fan of Bitcoin, making his municipality one of the first cities in the world that launched its coin, the Miami coin, and became the first Mayor to receive a salary in Bitcoin.
Mayor of Rio, Eduardo Paes, the 13th mayor of Rio de Janeiro, a huge seaside city in Brazil, will buy Bitcoin for city reserves. Rio de Janeiro announced establishing a working group to deal with the matters of accepting Bitcoin for the city’s funds.
In the presence of “bitcoin” mayor Francis Suarez, Eduardo Paes revealed that 1% of the Treasury of Rio de Janeiro would be in Bitcoin.
Paes said:
“We will launch Crypto Rio and invest 1% of the Treasury in Bitcoin.”
According to Eduardo Paes, the connection with Miami is vital in a world of global cities. Rio wants to pursue the Bitcoin adoption movement to become the tech capital of South America, following the large US city, which continues to grow and even has its cryptocurrency, MiamiCoin.
“Rio de Janeiro has everything it takes to become the tech capital of South America. Events like the Rio Innovation Week come to strengthen the city’s image as the perfect place to work, live and innovate.”
Eduardo Paes, thanking the Mayor of Miami for participating in the event, said:
“Miami and Rio are global cities, attracting people, businesses, and organizations. This international dialogue is essential.”
If Rio holds 1% of its reserves in Bitcoin, it remains to be seen how much this value will be Dollars and how many coins the city will be able to buy in the market when it acts. In South America, Rio will become the first city to have Bitcoin as a reserve.
Other details disclosed by Paes were about the payment of taxes with Bitcoin.
The city administration is looking forward to providing a 10% discount on taxes when paid in Bitcoin, which shows that the beautiful city is willing to process payments with the most prominent digital currency in the world.
Some details that remain to be revealed are who will take care of this Bitcoin that will be purchased by Rio and those received by tax payments; in addition, Rio will need help to process Bitcoin payments from some company, or will it do everything by himself. Finally, Eduardo Paes did not reveal whether he intends, as Miami has already done, to create its cryptocurrency in the future or not.