According to news published on Saturday, Rio de Janeiro, one of the largest cities in Brazil, would start taking crypto as a means of payment for taxes next year. As stated by the notification from Rio’s Hall, the metropolitan area will employ different corporations to manage the exchange of digital currencies to the Brazilian reals.
The CEO of Binance, Changpeng Zhao, confirmed the creation of a new branch in the area, stating that: “The governor has carried out his bit. The exchange will do its own”
The translated document states the following: “To ease the procedure, the town will engage with organizations that are experts in transforming digital currencies to reais. Using this method, City Hall would get the total sum in money.”
Rio To Publish NFT Featuring The City’s Tourist Attractions
Also, Rio is ready to issue a special collection of NFTs. The twist is that these NFT s will incorporate pictures of the most prominent tourist sites in the city.
The Finance Secretary of the city, Pedro Paulo, stated that this would aid local artists to showcase their work and also attract visitors to the large city.
Rio’s recent efforts are hardly the first. As reported earlier, Paes indicated his plan to invest a percentage of the big city’s finances in cryptocurrency during a discussion held with Francis Suarez, Mayor of Miami.
Discounts On Taxes Paid With Cryptocurrency
Pedro Paulo, the finance secretary of Rio, said the city aims to give an extra discount to residents who make tax payments using crypto.
It’s not surprising that the city has crypto aspirations. Only last month, the Economic Affair Committee of Brazil’s Senate overwhelmingly enacted laws governing the cryptocurrency industry in the nation.
The section of the bill defines virtual currencies and the duties of service providers. Additionally, it defined the sorts of behavior that might lead to criminal liability and outlined the consequences if such rules are broken.
On the 29th of January, Meta, the biggest social networking platform globally, filed a trademark right with the Brazilian authorities to create, develop, and deliver software and hardware for a variety of BTC and cryptocurrency-related operations. Presently, the market capitalization of BTC is over $858.25 billion, according to trading view.
Brazil Is Considering Establishing Its CBDC
Moreover, the central bank of Brazil is accelerating the development of its digital currency. The apex bank picked bids from Santander and Visa at the start of March to explore the viability of creating a Central Bank Digital Currency. Brazilian’s real is expected to enter the testing period in the Q2 of 2022.