Rio de Janeiro Goes Ahead With Bitcoin Integration Plans

Rio de Janeiro’s finance and planning secretary, Andrea Senko, recently revealed in an interview that her team is looking to drive Bitcoin (BTC) adoption by adding digital assets to the city’s treasury portfolio.

Senko believes that by integrating Bitcoin into the financial, social, and technological framework of Rio de Janeiro, the city can position itself as a destination for digital currency enthusiasts (from all over the world) and establish itself as Brazil’s leading crypto hub.

To help with these efforts, the city government has established the Municipal Committee for Crypto Investments (CMCI), whose role, according to Senko, is as follows:

“The Municipal Committee for Cryptoinvestments (CMCI), established in March 2022, works on a policy for investment in crypto assets and a governance model for decision making.”

When allocating 1% of the mayor’s coffers to Bitcoin, she said that buying and selling would be done in conjunction with leading economists and market analysts to identify and account for any volatility and potential risks that may occur in the future.

While Rio de Janeiro appears to be ahead with its first steps in Bitcoin adoption, no other local municipality in Brazil has shown any interest in conducting such an experiment.

The isolation initiative has gained some traction at the national level. Brazil’s central government recently published a detailed document outlining a 0% tax on the import of Bitcoin mining equipment, with the only warning that the equipment must be powered entirely by renewable energy.

Brazil currently possesses one of the world’s most significant green energy matrices (grids), largely thanks to its abundance of hydroelectricity. Hence, more crypto-focused legislation could help unleash the country’s mining potential near to mid-term.

Several other cities have started integrating Bitcoin with different capacities, including Lugano in Switzerland, Fort Worth in the United States, and Miami. At the same time, countries like El-Salvador and the Central African Republic have also legalized the use of BTC within their borders.

The local government of Rio de Janeiro has captivated the world for more than half a year with its mass adoption of Bitcoin. A few months ago, Mayor Eduardo Paes met with Miami Mayor Francis Suarez — who also plans to incorporate Bitcoin into Miami’s governance framework — to discuss allocating 1% of Rio’s treasury to crypto assets.

Rio de Janeiro government is also willing to collect taxes in the form of Bitcoin, with discounts offered to individuals who choose to pay taxes via crypto to promote BTC as a means of payment.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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