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

[GreatArkansas]

This is one of the many ways action to support Bitcoin itself, even in some countries or cities that have some law about using Bitcoin or legal tender, which is for me it takes time.
But this Mayor, by just reporting about this, is already showing good support for Bitcoin. I just hope it is not involved with any corruption.

[cheezcarls]

And the massive adoption of Bitcoin continues. It’s much more contagious right now than the Omicron outbreak right now lol. How I wish that in my country Philippines, our respective mayors and officials (as long they are not corrupt) would embrace and adopt Bitcoin and cryptocurrencies to their local citizens. Despite the roller coaster ride of Bitcoin and other cryptocurrencies these days, there’s no stopping them from adopting cryptos. It’s the reality right now no matter how many bad news from the media do we get, like what China did.

[kryptqnick]

It sounds great, and I'd be happy if my city's mayor tried doing something like that, but given that it's basically taxpayers' money we're talking about, I'm pretty sure that one person cannot legally make that decision and someone will have to vote on that. Not to mention that it's a city, so the country's administration probably needs to give green light as well. I tried to find out how much 1% of Rio's city reserves is, but failed. I can see that people are trying to guess it as well, but I haven't seen official estimates. Moreover, if it's for cryptos in general and not Bitcoin specifically, it's less exciting and the article's name is very misleading, as was pointed out earlier in the thread.

[Lucius]

I just hope it is not involved with any corruption.

In Brazil? Where did you get such an idea?

Corruption is everywhere, the whole of Central and South America is synonymous with corruption and incompetent politicians, Brazil is no exception. What caught my eye was the fact that the mayor of Miami was mentioned, who also started talking about Bitcoin, and in the end, it all ended with MiamiCoin. I wouldn't be surprised if something like this happens in Rio, because they're all looking for a way to jump into the crypto train, but Bitcoin is just a stepping stone.


I couldn't find what the annual budget for Rio is, does that 1% mean anything worth mentioning at all?

[SFR10]

Brazilian city Rio de Janeiro's mayor, Eduardo Paes wants to assign 1% of the city’s treasury to Bitcoin.

Regardless of how small that 1% appears to some, I think it's a good start or as @worle1bm mentioned, a "smart move".

The panel also included major Brazilian officials like city finance secretary Pedro Paulo, who noted that the administration is considering a 10% discount on property tax in Brazil on payments with Bitcoin. “Let's study the legal framework to do this,” he said.

If that gets the green light, it'd be big news ^{[especially for those with multiple properties]}!

or they are clearly referring to their own cryptocurrency that they plan on releasing?

It's probably a little bit of both ^{[BTCitcoin and their own version of a CityCoin AKA "Crypto Rio" (like what @Lucius referred to: MiamiCoin) [there are a couple more: NYCCoin and AustinCoin]]}...

[mindrust]

That's amazing news. That's what real adoption looks like. First the mayor, then the central banks will adopt bitcoin and then the USD will be no more. Like Hemingway said: "Gradually, then suddenly." It starts always slowly and before you realize it will already be  at max speed. That's called "snowballing effect". I hope we can see more of these positive news in 2022.

[Beparanf]

I believe you add the word "plan" on the title because its a bit misleading. Although this is a good initiative and I believe he might get the approval since South America is known for crypto friendly region while the 1% allocation is still safe to invest. I hope they will follow El Salvador footstep for mass adoption for cryptocurrency in general.

[Lucius]

That's amazing news. That's what real adoption looks like. First the mayor, then the central banks will adopt bitcoin and then the USD will be no more. Like Hemingway said: "Gradually, then suddenly." It starts always slowly and before you realize it will already be  at max speed. That's called "snowballing effect". I hope we can see more of these positive news in 2022.

I don't know what's amazing about this story, that another city will start creating its own shitcoin? What's even weirder is that you think the central banks will embrace Bitcoin and just throw away fiat or gold. If it's easy for a member who has been here for years to sell a story like this, it's no wonder that all beginners live in the grave delusion that Bitcoin will rule the world.

Less than 5% of the world's population has come into contact with Bitcoin in some way so far (from 2009), it is not realistic to expect more than 15% by the end of the decade. Bitcoin is just an alternative, no killer of the existing financial system - and besides, greed is increasingly destroying it as a cryptocurrency and turning it more and more into digital gold that is becoming increasingly inaccessible to the common man.

[crwth]

This little thing is massive for the cryptocurrency community. It just shows that being part of the economy is already a good thing to do, especially for those who have been part of this for a long time. Imagine being able to continuously invest in crypto for the past few years and finally have some significant funds for it, and you'll be thankful.

I hope many more people see the possibility of crypto, its importance for everyone, and its message.

[buwaytress]

Is it cynical to treat all news like this as popularity moves and back chanelling to secure backing? You want to make lives a little bit better for your citizens, great. But I hardly think making crypto investments (again, note there actually isn't any specific Bitcoin intent) see the elite as benefactors, especially in a place hardly known for transparency. Not to point fingers since my own country sits very low in Transparency Index...

Bitcoin is not a magic wand to fix economic problems. Politicians are either naive or deceptive if they claim it does.

[Poker Player]

I don't know what's amazing about this story, that another city will start creating its own shitcoin?

You seem a bit pessimistic, Lucius. At the moment we don't know if it's going to happen. Besides, in Miami it is not all negative, far from it, the city has given extraordinary publicity to Bitcoin. Don't you think that the mayor of Miami receiving his paycheck in Bitcoin is good news? Now the mayor of New York wants to copy him. There have been many events about Bitcoin Miami and there are many ATMs and places where you can pay in Bitcoin there.

it's no wonder that all beginners live in the grave delusion that Bitcoin will rule the world.

Less than 5% of the world's population has come into contact with Bitcoin in some way so far (from 2009), it is not realistic to expect more than 15% by the end of the decade.

Here, again, I see you pessimistic. To me, it seems extraordinary to create a digital currency and have it have the level of adoption that it has today. Besides, in your future projection you rule out exponential growth. I think it will be faster.

Bitcoin is just an alternative, no killer of the existing financial system - and besides, greed is increasingly destroying it as a cryptocurrency and turning it more and more into digital gold that is becoming increasingly inaccessible to the common man.

I agree that it is not going to be a killer of the current financial system, but it offers a space for freedom for those who care about privacy by using it. However, the massive adoption will come from the financial system, with regulated exchanges, custodial wallets, derivative products, etc.

Why do you say it will be inaccessible to the common man? As of today the best that someone with limited resources who can save a little bit can do is to put the savings into Bitcoin by doing DCA. He's not going to get as rich as the winklevoss twins, but he's going to improve his situation a lot.

[Lucius]

You seem a bit pessimistic, Lucius.

Just realistic, nothing more than that. This is an exaggeration of something that may have minimal significance for one city, not even for Brazil as a whole.

Don't you think that the mayor of Miami receiving his paycheck in Bitcoin is good news?

If he receives his salary in Bitcoin and then converts it into fiat (and I guess that’s the case), then that’s the same story we’ve been telling for years about whether crypto payment processors are positive or negative for Bitcoin? Everyone wants Bitcoin, no one wants it directly, I think that speaks volumes about trust.

Here, again, I see you pessimistic. To me, it seems extraordinary to create a digital currency and have it have the level of adoption that it has today. Besides, in your future projection you rule out exponential growth. I think it will be faster.

I’ve been reading this forum since 2014, and I’ve read so much nonsense that I could write a book. Then there was talk of some 1-1.5% of those who own or trade Bitcoin, by the end of 2017 maybe it increased to 2.5% to 3%, today it is certainly not more than 5%. Talking about some kind of mass adaptation through central banks and the defeat of fiat currencies is not at all serious, but I understand that some have a need to live in fairy tales, their choice.

Why do you say it will be inaccessible to the common man? As of today the best that someone with limited resources who can save a little bit can do is to put the savings into Bitcoin by doing DCA. He's not going to get as rich as the winklevoss twins, but he's going to improve his situation a lot.

Of course, we can still support the idea that anyone can buy $10 worth of BTC, and then pay $20 to withdraw the same coins from the exchange if they are not aware of how things stand. The human perception of the value they get for their money has changed significantly when it comes to Bitcoin - if you ask someone if they want to buy 0.002 BTC for $100 or 100 xxx coins for the same amount, most remain in great doubt. An ordinary person could buy 1 BTC very easily 5-6 years ago, today he can only dream about it, and the time will come when even 0.10 will be astronomically far away.

[so98nn]

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.

The teasing and all is fine but imagine this is getting really implemented throughout the nations around the globe. Just like the way they all came together to put in the internet network around the globe, hand in hand I think they should also accept the crypto currencies which is running on their hardship internet.

These small news like this mayor and that mayor is getting involved into crypto is all fine for now, they are giving some push to us, or to the state peeps from the respective state. Its added bonus for sure. This makes those peeps to think about it and thus get into the business of crypto.

I just hope that they do not drain up the state money into dust out of greed of multiplying the wealth.

An infra and proper planned execution is indeed for this.

[hyudien]

According to sources

"Estamos estudando a possibilidade de pagar impostos com desconto adicional se você pagar com bitcoins. Você pega o desconto da cota única de 7%, faria 10% se pagar em bitcoin", disse Pedro Paulo. "Vamos estudar o arcabouço jurídico para que a gente possa fazer isso."

Chicão Bulhões acredita que o Rio vai ser uma cidade pioneira nesse assunto, principalmente no que diz respeito a investimento do Tesouro em ativos criptos, e a ideia é levar empresas dessa universo para além da Zona Sul.

"Essas empresas estão na região do Leblon e Ipanema e queremos descentralizar o máximo possível. Já tem incentivos fiscais aprovados, já tem um percentual de 2%, que queremos concentrar muito na região do Porto a vinda desses novos atores também", diz Chicão.

Note : Translate to English
"We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins. You take the discount of the single quota of 7%, it would be 10% if you pay in bitcoin", said Pedro Paulo. "Let's study the legal framework so that we can do that."

Chicão Bulhões believes that Rio will be a pioneer city in this matter, especially with regard to Treasury investment in crypto assets, and the idea is to take companies from this universe beyond the South Zone.

"These companies are in the Leblon and Ipanema regions and we want to decentralize as much as possible. They already have tax incentives approved, they already have a percentage of 2%, which we want to concentrate a lot on the Porto region as well," says Chicão.

What intrigued me was the pros and cons that occurred on the ground when Eduardo Paes' statement was slightly criticized by Federal Deputy Kim Kataguiri (DEM-SP) who claims to oppose the passage of Bill 2303/15 due to cryptocurrency restrictions. market. This was conveyed by Kataguiri in the video which he uploaded last January.

In short, there are two things that make a Kataguiri express his opinion, namely regulation and taxation. First, regulations that in my opinion give freedom to branch representatives to determine the operational criteria of the stock exchange. Meanwhile, among investors, this raises considerable doubts, because in the bill there is a proposal that only benefits companies that already operate in the cryptocurrency sector, must use a centralized authorization service. In simple terms, a company is considered not a legal entity if it does not use central authorization, and if it does not, it will be subject to sanctions.

I know that we don't need rigid laws that burden investors and keep people away from this innovative market . My idea has always been the other way around: to make it easier for small investors, without cost and without complications, to create a safe environment to attract new companies and investments. To make this happen, digital currency regulation is very important, because only then will there be legal certainty for investors and we will have the means to prevent so many frauds from fraudulent companies.

We formed a Special Commission to gather all the initiatives of other deputies and think together about the best solution to ensure more security for the Brazilian crypto market. All of these contributions help us to legislate on markets in the Brazilian economy and, above all, protect investors.

https://cointelegraph.com.br/news/understand-the-draft-regulation-of-cryptocurrencies-by-deputy-aureo-ribeiro

[NeuroticFish]

I couldn't find what the annual budget for Rio is, does that 1% mean anything worth mentioning at all?

Such a big city has to have quite a budget. I won't call that 1% worthless.

I've found this paper, but I don't know if it's the numbers we expect.
At page 5 (see image below) it shows at least 15000M BRL, of which 1% is 27M US dollar. I can call it a good start.
And even if this would not happen, I am still happy to see tax exemptions and basically a warm welcome to crypto businesses there. It's a good news.

[teosanru]

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

The most surprising line that I am reading here is to give tax exemptions to the industry, it's the first time you will see a person who is in the government saying that Cryptos should be given tax exemption. But I think his dream will remain a dream only if he is not able to convince the major government of the country, because if the central government is against Cryptos, they will never allow any taxpayer funds to go into cryptos.

[uneng]

I couldn't find what the annual budget for Rio is, does that 1% mean anything worth mentioning at all?

I found on the legislative house of Rio de Janeiro's state that the total receipt expected for 2022 is around 15$ billion dollars. It means they can potentially invest 150$ million dollars in cryptocurrency.

It would be good news if we were talking about an honest country, honest authorities and if they were going to adopt bitcoin specifically and not cryptocurrency in general.

Such a big city has to have quite a budget. I won't call that 1% worthless.

I've found this paper, but I don't know if it's the numbers we expect.
At page 5 (see image below) it shows at least 15000M BRL, of which 1% is 27M US dollar. I can call it a good start.
And even if this would not happen, I am still happy to see tax exemptions and basically a warm welcome to crypto businesses there. It's a good news.

https://i.imgur.com/MLG2MlP.png

It seems the values contained on this document are restricted to Public Health Actions sector. The total budget is much more expensive.

For 2022 the budget is estimated around 85,7$ billion of reais, which is proportional to 15$ billion dollars.

However, I don't have an article in english with the informations to post here.


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/

[Woodie]

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.

[Saint-loup]

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.

[rdbase]

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.