One of the most iconic cities on the South American continent, Rio de Janeiro has announced that it will allow its citizens to pay taxes with cryptocurrencies. This makes it the first city in the country to do so, assuming the cryptocurrency market is booming. These actions are part of a plan that sees the city investing some of its funds in crypto assets in the future.
Rio de Janeiro will expand its tax payment options
The city of Rio de Janeiro has revealed plans to introduce cryptocurrency into its payment options for taxes. At a recent event where city mayor Eduardo Paes was present, municipal officials announced plans to start collecting cryptocurrency for municipal tax called IPTU from next year. This tax is related to citizens’ properties and their value, and is collected by the municipality.
The initiative makes Rio de Janeiro the first city in Brazil to enable cryptocurrency payments for taxes. According to a press release, to accomplish this goal, the city will have to rely on third-party companies that will process the payments and convert them into fiat money. This way, the city will only receive Brazilian Real while users will be able to pay with crypto.
On this new proposal, Mayor Eduardo Paes said:
Our effort here is to make it clear that in the city of Rio we have official initiatives that recognize this market. Now those who invest in cryptocurrencies and live in the city of Rio will be able to spend this property here by paying official taxes in the city of Rio. And we’re going to move fast.
future plans
However, the city’s plans for cryptocurrency integration don’t stop there. According to Rio’s finance and planning secretary Pedro Paulo, the city plans to include more services under this new payment system. Paulo said:
In the future, this could be extended to services like taxi rides, for example. Going forward, we will use these crypto assets to encourage arts, culture and tourism through NFTs, and create a sound and responsible governance policy to evaluate the realization of crypto investments.
Towards this end goal, the city of Rio will create a new institution, the City Committee for Crypto Investments, which will study the best way to put some of the city’s funds into cryptocurrencies, while complying with all public spending laws in the country. The city announced the plan in January, stating that 1% of the city’s funds would be put into crypto at the time.
Why do you think Rio de Janeiro accepts cryptocurrencies as a form of payment for municipal taxes? Tell us in the comments section below.
image credit: Shutterstock, Pixabay, WikiCommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation or recommendation or endorsement of an offer to buy or sell any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the Company nor the author is responsible, directly or indirectly, for any damage or loss alleged to be caused by or in connection with the use or reliance on any content, goods or services mentioned in this article.