For 2023, the administration of Rio de Janeiro planned to amend the legislation that would allow paying property tax using bitcoin. Information about this was reported by the head of the department of economic development and innovation of the city of Chicago Bullhoins.
— Chicão (@ChicaoBulhoes) March 26, 2022
Based press release, a “specialized company” will be hired to convert cryptocurrencies into Brazilian real. This means that the city hall will not keep digital assets on its balance sheet.
“We are going to stimulate the circulation of cryptocurrencies by integrating them into the payment of taxes, as in the case of the city property tax. In the future, the practice may be extended to other services such as paying for taxis, ”said Pedro Paulo, a spokesman for the administration.
There is no information about which company will become an intermediary. But the day before, the head of Binance, Changpeng Zhao, wrote that he had met with the mayor of Rio de Janeiro, Eduardo Paez. On March 26, he also announced the opening of a bitcoin exchange office in the city.
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
In addition, the city administration announced the creation of the Municipal Committee for Crypto Investments. The latter will evaluate the risks and returns of potential investments in the digital asset ecosystem.