Brazilian mayor to reportedly invest 1% of city funds in Bitcoin

[wtsimis]

Brazilian city Rio de Janeiro's mayor, Eduardo Paes wants to assign 1% of the city’s treasury to Bitcoin. Paes talked about plans for turning the city into a cryptocurrency ecosystem hub.
Mayor announced We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play. Paes added that the state is also preparing to instruct tax exemptions for the crypto industry.

The news tells that the govt has a warms stance on Bitcoin and the cryptocurrency industry. Hopes that in near future the govt will bring a better environment for the industry.
Reference: https://cointelegraph.com/news/brazilian-mayor-to-reportedly-invest-1-of-city-reserves-in-bitcoin

[Upgrade00]

The reported quote talks about investing into cryptocurrency and not Bitcoin in particular, so the headline is a bit misleading and as may others is a ploy to get traffic from Bitcoin users and news about government adoption is one to get people excited.

I am not really concerned about the news of investing city funds into Bitcoin, it is fast becoming the safest way to store wealth and it's only a matter of time before more nations and treasuries use it. I was more interested in the part which talked about tax exemption which I believe was teased in the US infrastructure bill which was public some months ago. This is a big step from any nation which wishes to become more crypto friendly.

[eaLiTy]

Mayor announced We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play. Paes added that the state is also preparing to instruct tax exemptions for the crypto industry.

I do not care whether the government invest in the cryptocurrency market or not but the import aspect here is they are thinking about tax exemptions to the new market and that is how a government should be rather than some countries ruled by jokers planning to regulate and restrict the market. If we want to see innovation, it should be a free and open market.

[sheenshane]

Investing 1% of the city funds is almost nothing, I didn't know how much the overall fund they had but I think 1% allocated is a very small amount.
It seems they are trying a small amount that they can afford.

But the good thing is the exemption on the tax which is the right thing to do than trying to regulate Bitcoin on their own which they can't.
I know the government is fully relying on collecting Taxes, it may be they understand how Bitcoin will work.

[passwordnow]

There must be a consensus between him and other officials under his city before proceeding on it. Even it's too low for 1%, just like what happened in El Salvador, still, many people will dislike the idea. I'm into it and like the idea but I'm not from that city and for sure there are people that would go against his proposal. If it's his funds then there's no problem with it but if it's the fund of the public, for sure there will be people that would like to disagree and don't like the idea.

[cabron]

There must be a consensus between him and other officials under his city before proceeding on it. Even it's too low for 1%, just like what happened in El Salvador, still, many people will dislike the idea. I'm into it and like the idea but I'm not from that city and for sure there are people that would go against his proposal. If it's his funds then there's no problem with it but if it's the fund of the public, for sure there will be people that would like to disagree and don't like the idea.

He wouldn't be able to do it alone without consensus, I think he can't do it by himself so he needs approval from the officials around him. This is a good development though because hyperbitcoinization is already about to erupt everywhere in Latin countries. All of them will agree in the end which they may probably increase the percentage. It only needs a bit of a Bukele willpower to magnify the effect of Bitcoin in Brazil.

[Obito]

This is a bit questionable but a big move nonetheless, pretty sure that a lot of people in Rio have been consulted about this kind of thing because this is city funds that's invested in something that's super volatile and the profitability isn't exact and some people might not see the big picture so hopefully they did these prerequisites before proceeding in doing this.

[mk4]

Investing 1% of the city funds is almost nothing, I didn't know how much the overall fund they had but I think 1% allocated is a very small amount.
It seems they are trying a small amount that they can afford.

If you think about it, 1% is actually a pretty responsible amount to allocate in bitcoin; knowing that the funds should be used to improve the city in the first place. Take note that we're talking about an actual city, not a hedge/mutual fund.

[DapanasFruit]

Whether the mayor is referring to investing particularly in Bitcoin or any other cryptocurrency, the impact here is that this city and the people leading it can be crypto-friendly so they will likely be ready soon to accept crypto-related businesses who got plan to base in Rio de Janeiro and there can tax breaks to entice them to come in and invest in the city. And of course, this can be a big signal for the people to also take a look at cryptocurrency as a possible investment vehicle as they now have a model to follow...their own city. While we should not expect that Brazil can make Bitcoin as a legal tender, just recognizing it as officially an asset just like any other popular foreign money can be a big step forward.

[yohananaomi]

This is a bit questionable but a big move nonetheless, pretty sure that a lot of people in Rio have been consulted about this kind of thing because this is city funds that's invested in something that's super volatile and the profitability isn't exact and some people might not see the big picture so hopefully they did these prerequisites before proceeding in doing this.

I agree, this is indeed a bold move where the thing that is done may be for the purpose of income for the receipt of bitcoin for the betterment of the city of Rio, and the impact is also possible that anything can happen. not necessarily the government will accept what is done by the mayor's actions, because obviously everything must be discussed at a higher level in the government.

but an action that is highly appreciated if you have a visionary for more advanced goals in the future for the progress of the city of Rio. indeed there must always be changes with the adjustment of renewable technological advances, because these developments must continue to be updated.

[worle1bm]

Investing 1% of the city funds is almost nothing, I didn't know how much the overall fund they had but I think 1% allocated is a very small amount.
It seems they are trying a small amount that they can afford.

If you think about it, 1% is actually a pretty responsible amount to allocate in bitcoin; knowing that the funds should be used to improve the city in the first place. Take note that we're talking about an actual city, not a hedge/mutual fund.

Yes even if they are taking some investment steps with low amount also then it's good on your part because that will yeild high profits in the long run.But i also feel like that 1% of city funds will be huge enough that can accumulate some btc in their reserves and having them will surely boost their investments.

This is smart move as allocating just 1% to btc won't leave a bad image in public minds and meanwhile they will be getting good profits out of it.

[Poker Player]

Investing 1% of the city funds is almost nothing, I didn't know how much the overall fund they had but I think 1% allocated is a very small amount.

I don't know exactly how much it will be but I would not be surprised if it is more than what El Salvador has invested. El Salvador's GDP is around $25B, Brazil's $1645B (souce: google). Rio de Janeiro being the capital of Brazil, I'm guessing that it accounts at the very least for 25% of the GDP. That would make a minimum of $400B.

This makes it quite likely that they have more to invest than El Salvador. I don't know if there is anyone from Rio/Brazil who can give us an opinion.

Other than that, it sets a good example. If large public and private institutions start allocating 1% in Bitcoin we are going to have several million price per Bitcoin in a few years.

[anna0810]

The reported quote talks about investing into cryptocurrency and not Bitcoin in particular, so the headline is a bit misleading and as may others is a ploy to get traffic from Bitcoin users and news about government adoption is one to get people excited.

I am not really concerned about the news of investing city funds into Bitcoin, it is fast becoming the safest way to store wealth and it's only a matter of time before more nations and treasuries use it. I was more interested in the part which talked about tax exemption which I believe was teased in the US infrastructure bill which was public some months ago. This is a big step from any nation which wishes to become more crypto friendly.

[passwordnow]

There must be a consensus between him and other officials under his city before proceeding on it. Even it's too low for 1%, just like what happened in El Salvador, still, many people will dislike the idea. I'm into it and like the idea but I'm not from that city and for sure there are people that would go against his proposal. If it's his funds then there's no problem with it but if it's the fund of the public, for sure there will be people that would like to disagree and don't like the idea.

He wouldn't be able to do it alone without consensus, I think he can't do it by himself so he needs approval from the officials around him. This is a good development though because hyperbitcoinization is already about to erupt everywhere in Latin countries. All of them will agree in the end which they may probably increase the percentage. It only needs a bit of a Bukele willpower to magnify the effect of Bitcoin in Brazil.

Well, we know what mayors can do and that's probably under his power to pass and let it happen. But in this case, there could be constituents that would really be against the idea.
It's not always as good as what we're thinking because we're all bitcoin people but it involves the public funds and who knows if there could be laws that would be stepped on by his decision. But I guess, as a mayor, he knows his thing.

[Chato1977]

Brazilian city Rio de Janeiro's mayor, Eduardo Paes wants to assign 1% of the city’s treasury to Bitcoin. Paes talked about plans for turning the city into a cryptocurrency ecosystem hub.
Mayor announced We are going to launch Crypto Rio and invest 1% of the treasury in cryptocurrency. The government has a role to play. Paes added that the state is also preparing to instruct tax exemptions for the crypto industry.

The news tells that the govt has a warms stance on Bitcoin and the cryptocurrency industry. Hopes that in near future the govt will bring a better environment for the industry.
Reference: https://cointelegraph.com/news/brazilian-mayor-to-reportedly-invest-1-of-city-reserves-in-bitcoin

then what should be the impact of that Rio's 1% funds? will this even move the market upward ? though what i am looking here is the long term effect as he is obviously shilling for crypto and this is a good sign though.
but talking for the effect now? i dont see anything good coming soon.

[pinggoki]

The mayor of brazil is reported to have invested 1% of city funds into bitcoin, maybe this is a good step for the mayor of brazil, because the mayor of brazil is aware that investing in bitcoin can have a very good impact in the future, but before the mayor invests they must first discuss with their subordinates, because state money should not be used for other purposes, apart from the interests of the state and its citizens, hopefully the steps taken by the mayor of Brazil go well, and can provide benefits in the future..

I don't know but don't it sound a bit corrupt or at the least impudent because they use city funds on investing in a cryptocurrency that's volatile and the return would be unpredictable albeit tremendous? Pretty sure that it would raise some questions for some people as to why the Mayor did this. Hopefully this won't cause any problems internally because someone inside the government might not see the vision that they're seeing and that theey might see it as a waste of funds.

[YOSHIE]

Brazilian city Rio de Janeiro's mayor, Eduardo Paes wants to assign 1% of the city’s treasury to Bitcoin. Paes talked about plans for turning the city into a cryptocurrency ecosystem hub.

He has the power for money in the territory he controls, a brilliant idea if the mayor of brazil wants to invest in bitcoin, meaning: he is not selfish, he thinks how to build a city that he leads can progress and develop, Bitcoin is the best solution, that's good.

There are some leaders in government who invest in Bitcoin but for personal gain, not to build cities, Don't ask which country the leader is in, what's clear is that there is, what the mayor of brazil did is a good decision, if i were in brazil, i would support the mayor's idea.

[bitterguy28]

This will surely bring positive effect in the whole Brazilian territory because Rio de Janeiro is the most popular city of Brazil and having this from their Own Mayor then the effect will spread out and maybe in sooner time they will invest not just 1% but will add more.

and also their People will trust bitcoin and crypto and will consider investing as well, with that if big businesses and proprietor invest in this market then a insignificant increase will come our way.

Hope this is not just a propaganda instead this will in reality sooner.

[savetheFORUM]

The news tells that the govt has a warms stance on Bitcoin and the cryptocurrency industry. Hopes that in near future the govt will bring a better environment for the industry.
Reference: https://cointelegraph.com/news/brazilian-mayor-to-reportedly-invest-1-of-city-reserves-in-bitcoin

We are not really sure which cryptocurrency they are investing in, although cointelegraph.com said that it is going to be Bitcoin, but the comment coming from the mayor says that they are planning to create their own cryptocurrency, which will be called crypto Rio, and then they would be investing 1% in cryptocurrency. He didn’t say whether it is going to be a Bitcoin or any other cryptocurrency at all, so it’s best to wait and hear more from him on whether they would be investing it in Bitcoin or any other cryptocurrency, or they are clearly referring to their own cryptocurrency that they plan on releasing?

[DeathAngel]

He’s not the first & he won’t be the last to make such a move. Governments & figures of authority will have no choice but to make similar moves in the medium to long term future. Every new tech or invention has doubters at the beginning but if it’s good enough & important enough then mass adoption happens. I personally think it’s neglectful for these people & authorities not to have some exposure to bitcoin, especially with inflation & the way current fiat currencies are performing.