Rio de Janeiro To Allow Paying Taxes With Crypto Starting From 2023

[Coinshots]

Rio de Janeiro will be the first Brazilian city to allow its residents to pay taxes with crypto.

Rio de Janeiro, the second-largest Brazilian city, will make it possible to pay property taxes with cryptocurrencies starting from 2023, according to a report published by Bloomberg Línea.

According to a note that comes from Rio de Janeiro's City Hall, the city will hire several companies that will be responsible for converting cryptocurrencies into the Brazilian real.

The city also plans to develop its own collection of non-fungible tokens that will feature images of Rio de Janeiro’s most famous tourist spots. The goal is to stimulate tourism and incentivize local artists with the help of NFTs, according to Pedro Paulo, the city’s secretary of finance and planning.       

Rio de Janeiro’s cryptocurrency ambitions do not come as a surprise. Rio de Janeiro Mayor Eduardo Paes announced his plan to put 1% of the city’s treasury into crypto during a conversation with Miami Mayor Francis Suarez.

Paulo also claimed that Rio de Janeiro had plans to offer an additional discount to those residents who pay their taxes with cryptocurrencies.

Last month, the economic affairs committee of Brazil’s Senate unanimously greenlit a bill regulating the local cryptocurrency market. The text of the legislation defines virtual assets and the responsibilities of service providers while specifying criminal liability and fines for breaking specific rules.

In the meantime, the central bank of Brazil is actively working on developing its own central bank digital currency. Earlier this month, the central bank chose projects from such firms as Visa and Santander to assess the viability of developing a CBDC. The Brazilian real is expected to enter the testing phase in the second half of the year.

Source: https://www.coinshots.com/news/rio-de-janeiro-to-allow-paying-taxes-with-crypto-starting-from-2023

[oHnK]

If the goverment really will make it happen, I think this is one big movement for the city. When they earn money in BTC and save it so the value of what they earn never get inflation effect. The convenience which is offered by the government will interest people to aware pay tax even their crypto asset.

[Falconer]

If the goverment really will make it happen, I think this is one big movement for the city. When they earn money in BTC and save it so the value of what they earn never get inflation effect. The convenience which is offered by the government will interest people to aware pay tax even their crypto asset.

1 bitcoin will remain 1 bitcoin forever if they want to keep it, but governments should certainly consider the volatility of cryoto prices in the long run because they shouldn't invest with their people's money as much as they can afford.

Governments may be able to save 10%-20% of assets that go into their wallets as tax revenue for investing, while another 80%-90% should be converted directly to fiat to prevent price volatility. But of course, the news will be good for crypto developments in Brazil.

[Asiska02]

This is such a very big development for the crypto market. If many other countries will accept such then the centralized money policy will be over with time and everyone will be in a better and more secured money saving policy.

[Poker Player]

In some recent post I said that I think we are at the beginning of the adoption by public institutions. This cycle started with the adoption by private institutions, companies, and I think we are at the beginning of a path in which owning crypto in a few years (maybe 10 or 20) will be as normal as today is to have a cell phone with internet connection. Just today there was a similar news about Portsmouth in the forum.

In the case of Rio de Janeiro, I like it better that they plan to keep 1% in reserves, while Portsmouth plans to convert all payments automatically to dollars. Although they talk in general about crypto, and it seems to me that only a small part will be Bitcoin, but in any case, anything that helps normalization and mass adoption is good news.

[gantez]

Is Rio de Janeiro having a separate law above that of Brazil as a country ? That is my question about this development or are they running a confederation government in Brazil. Anyway if they are now accepting tax payment in cryptocurrency then other states will join to that. This is more great win for cryptocurrency that will push the price up.

[oHnK]

1 bitcoin will remain 1 bitcoin forever if they want to keep it, but governments should certainly consider the volatility of cryoto prices in the long run because they shouldn't invest with their people's money as much as they can afford.

Governments may be able to save 10%-20% of assets that go into their wallets as tax revenue for investing, while another 80%-90% should be converted directly to fiat to prevent price volatility. But of course, the news will be good for crypto developments in Brazil.

Yes of course, the government will not keep all of asset in Bitcoin, they have to fulfill people needs for public facilities such as road, school, hospital and etc. This is the function of tax, the circulation and income for developing city to be better, it should be supported fully with convenience for taxpayers. the easier it is the more they are happy and don't think long about paying for it.  no one is harmed by the implementation of this bitcoin.

[Leviathan.007]

In recent years, brazil starting adoption in many things for their people and governments changed a lot because I visited this country about ten years ago and compared to many other countries this country is doing more hard work for the adoption of their government, cryptocurrencies and bitcoin can be one of them because they aim to be a technology-friendly country and keep their people happy, also there are some other countries they are considering paying tax with bitcoin, this can be a good new to see brazil is one of them.

[wozzek23]

It’s a really nice move. Allowing their citizens to pay their taxes by using cryptocurrencies such as Bitcoin is good and I believe it would make a lot of things more easier for people. Is usually good when the government allows people a choice like this, there should be several options  available for people to pick from.

And it’s good that the City of Rio de Janeiro has allowed its citizens to be able to make the decision for themselves and whether they will be able to make payments using crypto or using Fiat, whichever they would prefer, then they would use that.  This shows that their government is fully into cryptocurrency and would clear all doubts that most people would have about making use of cryptocurrency and encourage them to go for it.

[fiulpro]

I do not understand the fact why the government is trying to convert the cryptocurrencies to the local currency since this can very easily mean that the government can actually get an indirect bitcoins treasury. They could also have problems with the volatility as well. I do think that what they are doing is amazing but they should keep the bitcoins insted of employing a company to convert it into the fiat.

This would also mean that they would be able to track down people who are actually holding a lot of Bitcoins as well. Therefore it's a double edged sword as well, some people are definately Hiding so that they don't have to pay taxes therefore this might be an easy way out for them without getting in any trouble as well.

[Scripture]

This is huge, accepting crypto is a big threat to the banks and yet the government allows it this only means to me that many Brazilian people already understand cryprocurrency and they know its real value. I’ve heard rumors before about banning Bitcoin in Brazil but it looks like now they are heading into a good adoption, this can benefit a lot of people for sure and it can affect the market as well.

[Dunamisx]

Allowing their citizens to pay their taxes by using cryptocurrencies such as Bitcoin is good and I believe it would make a lot of things more easier for people

I give in to believe this to an extent base on the fact that the government are collecting the tax not minding the negative implication it may cause the operators, very soon dont be surprised they may also wanted to lunch their own CBDC, government don't joke with anything involving finance.

Is usually good when the government allows people a choice like this, there should be several options  available for people to pick from.

I hope they maintain this their decision not to change it with time

[CaVO32]

This is huge, accepting crypto is a big threat to the banks and yet the government allows it this only means to me that many Brazilian people already understand cryprocurrency and they know its real value. I’ve heard rumors before about banning Bitcoin in Brazil but it looks like now they are heading into a good adoption, this can benefit a lot of people for sure and it can affect the market as well.

This may be influenced by the initiatives like from El Salvador's government and other countries that are crypto friendly. As the government is looking for payment options in terms of digital or online method, crypto will be a very good one to consider in this option. The government wants to reach its people as much as possible with possible known alternative payment methods, in order for them to encourage its people to comply with their taxes at their own convenience.

[Strongkored]

according to the news what is earned from paying taxes through crypto remains in the form of local currency because the government will use a third party to convert crypto, maybe the government wants to know exactly what percentage of its citizens use crypto and so it has the right data and it will be easy for them developing other things in crypto.

[Mauser]

That's an awesome move. I hope they will make it possible that all kinds of taxes can be paid in cryptos going forward. This creates so many new opportunities for Brazil. Rio de Janeiro is a beautiful city, maybe they want to transform into the new crypto capital of South America. For the big crypto traders this could be a chance to relocate to Rio. Imagine trading during the day and enjoy the beautiful beaches and nightlife in the evening. Also if this will be a big success for Rio then other cities in Brazil and South America will do the same. Another great news for the crypto community.

[KennyR]

Rio de Janeiro one of the well known city among the entire list of popular cities in the world turning to be cryptocurrency friendly is good. The Mayor already have got plans of legalizing cryptocurrency. The best thing out of the move is the providing discount to businesses that work with cryptocurrency. On the other side Brazil is working on the development of its own CBDC. Allowing people to pay taxes in cryptocurrency is the base to make people learn about cryptocurrencies. Once the CBDC is developed people will be asked to move towards the country's CBDC.

[Mario Vella]

Rest of Brazil will follow? Or do you think this will be unique just to Rio de Janeiro?

[SirLancelot]

Is Rio de Janeiro having a separate law above that of Brazil as a country ? That is my question about this development or are they running a confederation government in Brazil. Anyway if they are now accepting tax payment in cryptocurrency then other states will join to that. This is more great win for cryptocurrency that will push the price up.

It’s a normal thing in some countries, states are allowed to make such laws for themselves. You can take Colorado in the United states as an example: their governor announced that they will soon start accepting cryptocurrency such as ethereum and Bitcoin for tax payment starting from June. So it’s really nothing new, there are states that do similar things in different countries.

And when a particular state like this decides to take such a move, I believe that it is also going to encourage other states in that country to also permit their citizens to  have access to paying their tax with cryptocurrency. When they see how well things are going with the ones that have adopted it, they would also like to do the same thing.

[tvplus006]

...According to a note that comes from Rio de Janeiro's City Hall, the city will hire several companies that will be responsible for converting cryptocurrencies into the Brazilian real...
Paulo also claimed that Rio de Janeiro had plans to offer an additional discount to those residents who pay their taxes with cryptocurrencies...

For me, the interest of the Mayor office of Rio de Janeiro in paying tax in cryptocurrency and providing discounts for it is completely incomprehensible. After all, the mayor's office is not going to hold the cryptocurrency, but will use the conversion of the cryptocurrency into the Brazilian real. And at the same time, she will also have to pay a percentage for the conversion.

[kaya11]

Why would they delay on imposing it to next year? They could've done it now, or are they still studying furthermore? Is it really hard to make it happen as early as they can? I mean delaying it would be bad move, it could be canceled anytime within those span of time. Either way it is a nice move, especially with the discounts of paying taxes with crypto, good strategy for the people get into using crypto currencies.