Rio de Janeiro will allow paying taxes with crypto from 2023

Santa Teresa Rio de Janeiro State of Rio de Janeiro Brazil panoramio

Alex Dovbnya

Rio de Janeiro becomes the first Brazilian city to allow its residents to pay taxes with crypto

Rio de Janeiro, Brazil’s second-largest city, will make it possible to pay real estate taxes with cryptocurrencies from 2023, according to a report by Bloomberg LĂ­nea.

According to a note emanating from the City Hall of Rio de Janeiro, the city will hire several companies that will be responsible for converting cryptocurrencies into the Brazilian real.

The city also plans to develop its own collection of non-fungible tokens depicting Rio de Janeiro’s most famous tourist spots. The goal is to boost tourism and encourage local artists through NFTs, said Pedro Paulo, the city secretary of finance and planning.

Rio de Janeiro’s cryptocurrency ambitions come as no surprise. As reported by U.Today, Rio de Janeiro Mayor Eduardo Paes announced his plan to put 1% of the city’s treasury in crypto during a conversation with Miami Mayor Francis Suarez.

Paulo also claimed that Rio de Janeiro had plans to offer an additional discount to residents who pay their taxes with cryptocurrencies.

Last month, the Brazilian Senate’s Economic Affairs Committee unanimously gave the green light to a bill regulating the local cryptocurrency market. The text of the legislation defines virtual assets and the responsibilities of service providers, while specifying criminal liability and fines for violating specific rules.

Meanwhile, Brazil’s central bank is actively developing its own digital central bank currency. Earlier this month, the central bank chose projects from companies like Visa and Santander to assess the viability of developing a CBDC. The Brazilian real is expected to enter the testing phase in the second half of the year.

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