Rio de Janeiro’s administration, the Brazilian capital, has announced a new initiative that will make it possible for individuals to pay urban real estate taxes by Bitcoin. A report states that the move is a component of the city’s crypto currency taxation regulations, which are expected to become effective in 2023.
Several companies will be contracted by the City Hall of Rio de Janeiro to handle the conversion of cryptocurrency into Brazilian Real, according to a notice they issued.
In accordance with information reported by Cointelegraph Brazil, the new crypto tax law will go into effect in 2023 as announced by the Minister of Economic Development, Innovation and Simplification, Chico Bulhes
Work from anywhere = Rio! Welcome @binance… Rio on blockchain! @eduardopaes https://t.co/NJEArEvEXV
— Chicão (@ChicaoBulhoes) March 26, 2022
As a result of the authority’s decision, the city’s cryptocurrency market is expected to grow considerably sooner than expected. In order to perform the crypto-to-real conversion, the municipal government intends to enlist blockchain-specialized organizations and individual participants.
Additionally, the city plans to implement NFT governance norms in a range of areas such as arts, culture, and tourism, in addition to implementation of the governance rules.
The secretaries, as part of the announcement, announced the formation of a Municipal Committee for Crypto Investments (CMCI), which will be responsible for developing and refining a method based on risk and profit analysis, which will allow for the efficient investment of public resources in crypto assets while taking into account the limitations of government rules and the use of public money.
Binance CEO, Changpeng Zhao, has announced that he has undertaken to open an office in Brazil on behalf of Mayor Eduardo Paes’ initiative, stating that he has already done so. As for Binance’s, we are working on it.”
9 days ago, I made a handshake deal with mayor @eduardopaes. Rio De Janeiro will accept crypto for tax payments, and @Binance will open an office in Rio. He's done his part. We are working on ours. https://t.co/HPJONtBfQ8
— CZ 🔶 Binance (@cz_binance) March 26, 2022
Rio de Janeiro will be the first Brazilian city to introduce Bitcoin payments to the mainstream once the project is launched. According to the translated announcement:
“To enable the operation, the municipality will hire companies specialized in converting crypto assets into reais. In this way, the City Hall will receive 100% of the amount in the currency.”As a result of the city accepting cryptocurrencies into its currency exchange, the Brazilian secretary of the department of finance, Pedro Paulo, confirmed that the city’s goal is to create a market in Brasilia for this new asset class.
“We will stimulate the circulation of cryptocurrencies by integrating them into the payment of taxes, as in the case of IPTU and, in the future, this can be expanded to services such as taxi races, for example.”Furthermore, it is also worth mentioning that Meta, the most popular social media platform in the world, has filed a trademark with Brazilian authorities in order to design, develop, and provide hardware and software needed for the provision of various BTC and cryptocurrency-related services.
Brazil’s central bank is embarking on a major project to build its own digital currency as fast as it can. It was announced earlier this month that the central bank selected proposals from Visa and Santander to assess the likelihood of establishing a CBDC. There is a strong possibility that the Brazilian real will begin the testing phase in the second half of the year.
