Cryptocurrency modes as fare mode; Rio De Janeiro joins the list
Rio De Janeiro said it would allow cryptocurrency as a method of paying property taxes. According to an article published on March 25, 2022 by Bloomberg Lnea, Rio de Janeiro, the second largest city in Brazil, will allow residents to pay property taxes with cryptocurrencies starting in 2023. Rio will be the first city in the country to allow crypto as a means of paying taxes.
According to a memo from Rio de Janeiro City Hall, the city would hire various companies to convert cryptocurrency into Brazilian reals. The statement is an extension of Mayor Eduardo Paes’ working committee, which was formed in January this year to examine methods to boost the use of cryptocurrencies and strengthen the city’s economy. In addition to the announcement, during a conversation with Miami Mayor Francis Suarez, Mayor Paes stated his intention 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 created to develop and refine a methodology based on risk and return analysis. This is to enable the investment of resources in crypto assets while adhering to CVM and central bank guidelines.
Rio joins list of places to allow tax payment via cryptocurrency
As TWJ reported, earlier in the week, Florida Governor Ron DeSantis expressed interest in allowing the use of cryptocurrencies to pay state taxes. During a press appearance at Wesley Chapel, where he signed a measure requiring financial literacy courses in law, the governor made the remarks. Personal financial education is now a requirement for high school graduation.
The governor said he included funds for blockchain technology experimentation in his budget proposal, but the initiative was not included in appropriations for the upcoming fiscal year. Rio seems to be following the same trend.
Additionally, 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 finance and development secretary, the idea is to use NFTs to boost tourism and motivate local artists.