During the Rio Innovation Week conference, Paes stated “We are going to launch Cripto Rio and invest 1% of the Treasury in cryptocurrency”. 

Miami Mayor Francis Suarez also made an appearance to discuss the possibility of utilizing cryptocurrencies within Rio. Paes plans to do something similar to what Suarez has done for Miami by seeking investors and companies to do business in the city. Paes hopes to attract large tech companies to Porto Maravalley with tax incentives and the support of the Mayor’s office. 

Most taxes have risen in U.S. cities but Suarez pointed out that the opposite has happened in Miami. Suarez revealed his support for Bitcoin and cryptocurrencies in early 2021 by hosting the Bitcoin white paper on the Miami municipal page. Suarez has made it clear that he wants his city to become “a hub for crypto innovation” and is taking measures to continue attracting businesses.

Tax discounts for payment with bitcoin

On the same panel were Secretaries Pedro Paulo from Finance, and Chicão Bulhões from Economic Development and Innovation. They also hope to transform Rio into a cryptocurrency hub by attracting international companies. “We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins,” said Paulo.

Tax incentives have also been confirmed to already be in place for some areas as well. “These companies are in the region of Leblon and Ipanema and we want to decentralize as much as possible. It already has tax incentives approved, it already has a percentage of 2%, which we want to focus a lot on the Porto region for the arrival of these new actors as well,” says Chicão.

Allowing companies the option to pay taxes with bitcoin may mean that the city’s Treasury will hold bitcoin in the near future. It is not confirmed yet how much bitcoin will be held and what other cryptocurrencies will be included in their reserves.

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