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

[franky1]

reading some estimate from other posters..

i think the more logical one of them all was
rio having 40bill reals $7,226,872,000.00 meaning investing $72mill in bitcoin projects

EDIT: My bad, I was wrong on my statement above.

15$ billion dollars is the total budget expected for the state of Rio de Janeiro in 2022.

The budget of the city of the Rio de Janeiro (which is the one being talked about on this thread, since it's the mayor who is making the proposal) expected for 2022 is 7$ billion dollars or 40$ billion reais. So the crypto investment would be around 70$ million dollars proportional to 1% of that budget.

https://prefeitura.rio/cidade/com-contas-em-ordem-prefeitura-do-rio-envia-para-camara-orcamento-de-r-40-bilhoes-para-2022/

[yazher]

I would think it is good having the second largest population in both Americas to publicly say they will be investing into bitcoin.
Even if it is only 1% that is a start and won't be going down but can only go up for the future.
You can think of it that way.

As long as they made it public, they want to promote it to their people and they wanted them to think even the government doesn't doubt about the legitimacy of cryptocurrencies rather they invested the city funds to it. It might be sound ridiculous but that's just the way I see it because they might just hide it or keep it to themselves but they decide to let the people know about it. The way they are transparent to their people makes me think our city is in no way close to them.

[Leviathan.007]

Its good news to see many new investors in bitcoin and cryptocurrencies may governments and the related organizations or many normal people but in this case, about the Brazilian mayor of Rio de Janeiro, I cannot say if his investing is really related to their governments because as a person he does have the right to invest and his own idea, regardless of that I believe after what El Salvador is doing and investing on bitcoin, time after time more governments will be attracted to invest there, however, there are maybe other mayors and other government-related people who did invest in bitcoin and we don't know them because they don't want to reveal their names on the news for their own privacy.

[Kelvinid]

As much as this sounds good for the crypto community, am hoping that the mayor is not acting ultravires which could land the mayor in problems and in the process give bitcoin a bad name. But if his acting within his powers then this is good news and hope this investment pays well with time.

Yes, it's true I have the same thoughts as you, what I'm afraid of is that he hides behind the word "bitcoin" especially if it is used for his own political interests. I think all bitcoin users welcome this, as long as it doesn't make bitcoin a bad name in the wider community later.

Then, I hope not but instead to have a clear statement in regards to funding 1% investment for Bitcoin. If the intent is to use for his political will, that surely it brought him in question and ruin his image. But I guess, he doesn't have the intent like that, maybe he is just able to see what this small investment could help for their economy. Although 1% is very small, at least it was a stepping stone to a bigger adoption.

[thecodebear]

It sounds nice and all but it is only 1% of a city, and they just said crypto without specifying Bitcoin, so it is possible that rather than storing the city's value in hard money they're just talking about investing in tech products (cryptos) which is less interesting in terms of advancing the future of money.

I'd wait to hear more about it. If it does turn out to be 1% into Bitcoin and is used to increase the prosperity long term of the city then that's great, as that would help that city and would be just one more tiny piece of adoption as Bitcoin marches onwards towards being the future money for humanity.

[Fortify]

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

It's always easy to spend other peoples money, especially if it's on a modern idea which is the buzzword of the moment. Brazil has a lot of problems right now and I'm not sure what they really have to offer in terms of a cryptocurrency hub. Maybe the Mayor should spend that 1% on more police, or training the police better, because most of the stories I hear about Rio are related to criminal activity these days. It's probably a lovely city but poverty can make people do dangerous things. Maybe looking at some sort of tech hub, not focused on on particular sector of the internet, would be more beneficial for the wider population. City mayors tend to have limited impact on the direction a country takes however and this could all be reversed by the next mayor so it's hard to see long term consistency.

[SmokerFace]

Can you please elaborate a bit more about which cryptocurrencies?. After reading the article, I only came to know they'll invest in cryptocurrencies, but they didn't tell us which one.

Rio de Janeiro is one of the most famous and biggest city in the world so even if he doesn't say which crypto he will choose for the moment, who cares? It's a huge news for global adoption and the crypto community should just be happy with that and congratulates him.

Anyways, bitcoin is the only way to hide our money from the government, so the Brazillian mayor may want to hide their black money through the cryptocurrencies, which makes the cryptocurrencies again unfamous. If he wants to invest in good deeds, I stand to support him.

He just wants to hide his black money according to you? Why he would make a public statement if he wanted to hide some funds? Moreover with all due respect to Brazilians I don't think people in Brazil really need Bitcoin to hide or launder their black money there.

Maybe you took all my words wrong. I am not against the Brazilians; I do respect them, but I wonder why a government that can not even control it accepts Cryptocurrencies ?. We all know that it can be used to hide the money, and people won't pay the taxes to the government once they utilize it. So what do you think about how they'll run their economy when they stop receiving the taxes and people used to hide money ?.

[randegibran]

what the mayor did by investing 1% of his assets in bitcoin is a rare thing where there are so many people who strongly reject bitcoin, but what the mayor has done deserves our appreciation.hopefully this is not only a discourse because at this time as we know that bitcoin really needs recognition or positive things about bitcoin so as to make bitcoin's survival better as in the topic above is a very good thing if the mayor really wants invest in cryptocurrencies

[molsewid]

what the mayor did by investing 1% of his assets in bitcoin is a rare thing where there are so many people who strongly reject bitcoin, but what the mayor has done deserves our appreciation.hopefully this is not only a discourse because at this time as we know that bitcoin really needs recognition or positive things about bitcoin so as to make bitcoin's survival better as in the topic above is a very good thing if the mayor really wants invest in cryptocurrencies

It is good to know if the mayor did invest his own asset but base on the title of the thread this mayor invest a 1% city funds which means it is not his own, it is a money of the people. Though I am not saying that investing it in bitcoin is bad but the fact that this fund must allocated in proper projects or allocations especially for the good of the people where this mayor are serving. Though I may not know the reason behind of the mayor why he/she did this but I do hope that any profit or gain this 1% fund earn I hope this may return to the people, return to the projects that people may benefits.

[LUCKMCFLY]

It sounds nice and all but it is only 1% of a city, and they just said crypto without specifying Bitcoin, so it is possible that rather than storing the city's value in hard money they're just talking about investing in tech products (cryptos) which is less interesting in terms of advancing the future of money.

I'd wait to hear more about it. If it does turn out to be 1% into Bitcoin and is used to increase the prosperity long term of the city then that's great, as that would help that city and would be just one more tiny piece of adoption as Bitcoin marches onwards towards being the future money for humanity.

Well it is Brazil, Brazil is one of the largest countries in the world, the largest in terms of territory in South America and one of the most industrialized, in this aspect Brazil is a very prosperous country with an incredible workforce, only 1% I am sure that it will give a great amount and if it is the money that a mayor's office can have, we are talking about a great patrimony, this is part of a master plan where eventually that investment can take a great leap and have a very high profitability, for me it is What you are doing is very intelligent, and hopefully many countries will follow this example.

[btc_angela]

what the mayor did by investing 1% of his assets in bitcoin is a rare thing where there are so many people who strongly reject bitcoin, but what the mayor has done deserves our appreciation.hopefully this is not only a discourse because at this time as we know that bitcoin really needs recognition or positive things about bitcoin so as to make bitcoin's survival better as in the topic above is a very good thing if the mayor really wants invest in cryptocurrencies

It is good to know if the mayor did invest his own asset but base on the title of the thread this mayor invest a 1% city funds which means it is not his own, it is a money of the people. Though I am not saying that investing it in bitcoin is bad but the fact that this fund must allocated in proper projects or allocations especially for the good of the people where this mayor are serving. Though I may not know the reason behind of the mayor why he/she did this but I do hope that any profit or gain this 1% fund earn I hope this may return to the people, return to the projects that people may benefits.

Perhaps the mayor is thinking that if ever the bitcoin investments materialized and profited in the future, it is the city that will win in the end and not him personality. And yes, the money in turn can be used to prosper the city more by building instrastructure for improvements.

So still a good decision in my opinion, and a win-win, maybe he can go down in history of city mayors in Brazil that pave the way for bitcoin to be accepted in their country in the future.

[rodskee]

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

Good start for a crypto supporting country like Brazil and this is also a best example for the other city if not the whole country to invest part of their city funds into crypto.

but for me they should have waited for todays time before investing as the price is really low and worth to invest for semi long term.

How much is that 1 percent? is there any plans to extend that investment for at least 5%?

[yohananaomi]

Yes, of course this is good news, this can be done by Eduardo Paes (mayor of Rio de Janeiro) when the Brazilian government softens its stance on crypto and blockchain technology.
the discourse of Eduardo Paes (mayor of Rio de Janeiro), investing part of the city's reserves in Bitcoin of 1% is clearly a very bold act and needs to be appreciated.

the city government is also exploring how to apply a discount on property tax payments made in Bitcoin. Currently, residents in Rio already enjoy a 7% discount on the property tax, but with the proposed amendments, this discount could be as high as 10% if paid in bitcoin.
Of course it is clear that the public will be facilitated because of this and will make bitcoin more well known.

It is likely that crypto adoption will be a big step for Bitcoin's development given that Rio's economy is one of the largest in South America and among the fastest growing internationally.
If Mayor Eduardo Paes succeeds in his bitcoin experiment, Rio will become the first city in Brazil to buy the world's most popular cryptocurrency.
hopefully this will trigger many more actions from the government against bitcoin which will have a positive impact on bitcoin itself.

[AicecreaME]

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.

Indeed, 1% seems really a little too small for an investment. This won't really be felt as this is just a very little portion of the city's fund unless the fund we are talking about is a hundred million, then it would be sufficient to be an investment that could aggressively earn a profit over time. However, if that would be the case, they would stake a lot of the people's funds in which could stir a heated argument and protests because there are people who are not really in favor of bitcoin and other crypto-related things.

Also, I believe this is done with the consent of all other officials because this won't push through if ever it is only done according to the mayor's lone decision. I just hope it won't spark protest and chaos just like what happened in El Salvador. Hopefully, more places and government officials would be more open with the idea of bitcoin and crypto because this would be an achievement to our community no matter how small.

[doomloop]

Good start for a crypto supporting country like Brazil and this is also a best example for the other city if not the whole country to invest part of their city funds into crypto.

but for me they should have waited for todays time before investing as the price is really low and worth to invest for semi long term.

How much is that 1 percent? is there any plans to extend that investment for at least 5%?

Yes, having at least a few city to be a crypto spot is better than nothing at all. Pretty sure other mayors that also have interest on crypto have seen the news and are also thinking of following it. They have not waited for this dip to occur but who would be able to predict that a heavy dip will come? No one but they might put more money now that prices are still down.

I like this news, I like the fact that the mayor publicly reported if what are the money collected money is going to not unlike to the mayors in most cities that they keep this kind of things a secret because they are corrupt. Even if we say they invest it some in crypto, it is still not right to keep it themselves.

[Oasisman]

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.

Indeed, 1% seems really a little too small for an investment. This won't really be felt as this is just a very little portion of the city's fund unless the fund we are talking about is a hundred million, then it would be sufficient to be an investment that could aggressively earn a profit over time. However, if that would be the case, they would stake a lot of the people's funds in which could stir a heated argument and protests because there are people who are not really in favor of bitcoin and other crypto-related things.

There is no small amount of investment If you carefully position yourself in a safer side especially that you're using a small percentage of the city treasury. Well, for exact same reason why the mayor decided to put only 1% so people won't worry that much and start a protest like what you have said.

Also, I believe this is done with the consent of all other officials because this won't push through if ever it is only done according to the mayor's lone decision. I just hope it won't spark protest and chaos just like what happened in El Salvador. Hopefully, more places and government officials would be more open with the idea of bitcoin and crypto because this would be an achievement to our community no matter how small.

Of course, Brazil is a democratic country so there are going to have a governing bodies that votes to allow the mayor's decision to invest 1% of the city treasury to Bitcoin.
I guess the mayor is really planning his moves to such project so his people won't overreact.

[Lucius]

I couldn't find much information about this, but I think it's a step that Brazil should try in dealing with inflation.

After 3 pages of discussion you can't find enough information? Maybe try to read something other than the first post and title.
 

Right now only salvador country is really investing a lot of money in bitcoin and even they are trying to fight the existing inflation by adopting cryptocurrency in that country, I think what the mayor of brazil has done is right, because now many countries are hit by inflation and if salvador and Brazil manage to fight inflation by adopting bitcoin, of course other countries will follow what they did, and this will trigger global adoption of bitcoin by other countries in the world.

Mayor of Rio de Janeiro, there is no mayor of Brazil - people do not be naive, this is about one city, not the state as some understand it. The significance of such moves globally is almost zero and has no effect on the price unless someone thinks -10% is a good thing.

[pushups44]

It's great to see that mayors around the world are interested in cryptocurrencies and bitcoin in particular, and are aiming to encourage investment in their cities. I believe Miami mayor Francis Suarez played a major role in this trend, so he deserves credit for his efforts to attract investment and talent to his city.

[KaliLinux]

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.

I have always thought about it, why isn't these countries investing some percentage of their treasure in Bitcoin for a number of years, because we have seen individuals and institutions that have made good profits from this investment and with Rio's mayor taking this route for the city I believe is nice most especially with the tax exception. I believe this will even encourage more investment. 

[Mpamaegbu]

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.

You didn't think that 1% was significant? Well, I think it is. What we should be looking at is the amount involved in the whole thing. Let's assume that the city fund is $10billion, wouldn't that 1% be $100 million? Wouldn't that be an appreciable amount of investment? But of course, it will be. You know like they say, drops of water make an ocean or the other one – Block by block a house is built. I think that gesture should be applauded in expectations that more will be done or that more cities will join in. So, for me it's a plus.