Brazilian city Rio de Janeiro is prepared to set aside 1% of its reserves to Bitcoin. The city’s mayor, Eduardo Paes, announced plans to turn the city into a cryptocurrency hub. If they come to fruition, Rio could become one of the first cities and jurisdictions in the world to invest in Bitcoin.
Taxpayers get discount on paying tax in Bitcoin
City finance secretary Pedro Paulo announced his team was also working on a 10% discount for people who pay their property tax in Bitcoin, Use the Bitcoin wrote.
Rio de Janeiro is one of the largest cities in Brazil. It emerged that Paes wanted to create “Crypto Rio” as well as a regional hub to promote digital asset innovation.
Local government has ‘role to play’ in crypto market
According to the mayor of Rio, his city is making efforts to invest 1% of its treasury in cryptocurrency. He says “the government has a role to play” in the cryptocurrency market.
In 2021, El Salvador became the first country in the world to make Bitcoin legal tender. A lot of other countries and jurisdictions (cities) started taking steps in this direction after El Salvador, paying close attention to Bitcoin and other digital currencies.
Analysts say regions might become key players in the cryptocurrency market’s future. They could be the main entities promoting Bitcoin adoption around the world.
Miami also working on crypto initiatives
Rio de Janeiro is not the only city working on Bitcoin and cryptocurrency initiatives. Miami is very active in the sector and even has its own crypto coin, MiamiCoin.
Paes shared a panel with his Miami counterpart, Francis Suarez, whose city is trying to become Bitcoin-friendlier and a larger player in the cryptocurrency industry.
In recent years, Bitcoin has attracted a large number of companies from across the globe. This is partly due to its value accumulation. It went from below $10,000 in 2020 to more than $68,000 in 2021.
Bitcoin is a scarce and valuable asset
Bitcoin is a scarce asset with a limited supply, which makes it very valuable. Every four years, the Bitcoin network undergoes what’s known as halving, where inflation drops by 50%. The inflation rate is programmed and decreases every year.
It’s no wonder why cities and other local governments are exploring opportunities to invest in Bitcoin and push for greater adoption among the population.
