Rio de Janeiro to enable crypto tax payments starting next year

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Rio de Janeiro, Brazil’s second-largest city, will begin accepting cryptocurrency payments for real estate taxes in 2023, reports said Saturday.

According to a report from the City Hall of Rio de Janeiro, the city will contract multiple companies to handle the conversion of cryptocurrencies to Brazilian reals.

Binance Chief Executive Officer Changpeng Zhao announced the opening of a new office in the region, commenting, “He has done his part. We do ours.”

According to the translated document:

“To facilitate the operation, the municipality will contract with companies specializing in converting cryptocurrency to reais. In this way, the town hall receives the entire amount in money.”

Rio releases NFT with tourist spots in the city

In addition, Rio is about to release a unique collection of non-fungible tokens (NFTs). However, those NFTs contain images of the city’s most popular tourist attractions.

Pedro Paulo, the city’s Minister of Finance and Development, will benefit local artists while encouraging tourists to the city.

Rio’s latest initiatives are not the first. As previously reported, Paes stated his intention to invest 1% of the city’s funds in digital currencies during a meeting with Miami Mayor Francis Suarez.

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BTC total market cap at $858.25 billion on the weekend chart | Source: TradingView.com

Discounts for crypto tax payments

The Minister of Finance and Planning of Rio de Janeiro, Pedro Paulo, claimed that the city plans to offer an additional discount to citizens who pay their taxes in cryptocurrency.

The city’s crypto ambitions are not surprising. Last month, the Brazilian Senate’s Economic Affairs Committee unanimously passed legislation regulating the country’s cryptocurrency sector.

The bill’s clauses specify the roles of virtual assets and service providers. Furthermore, the types of behavior that could lead to criminal guilt were described and penalties were established for rule violations.

Meta, the world’s largest social media platform, registered a trademark with Brazilian regulators on January 29 for the purpose of designing, developing and providing hardware and software for various Bitcoin and crypto-related services.

Brazil creates its own CBDC

Meanwhile, Brazil’s central bank is aggressively building its own digital money.

Earlier this month, the central bank selected proposals from Visa and Santander to assess the feasibility of establishing a CBDC.

The Brazilian real is likely to enter the testing phase in the second half of the year.

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Featured image from Yahoo Finance, chart from TradingView.com

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