Rio de Janeiro mayor Eduardo Paes announced that the prefecture intends to convert 1% of the city’s cash reserves into digital assets, according to O Globo.
The initial report stated that it referred to Bitcoin, but the wording was later broadened.
He unveiled the plan at the online Rio Innovation Week, discussing the challenges of turning Brazil’s megacity into an innovation hub alongside Miami mayor Francis Suárez.
“We intend to launch the Crypto Rio project and invest 1% of the treasury in cryptocurrencies,” Paes said.
The politician also noted that to attract innovation the authorities would provide tax incentives to technology-sector companies under the Porto Maravilha initiative to revive the city’s port districts.
Suárez said that by doing something similar, Miami had managed to lure several companies from Silicon Valley.
“We created a tsunami of opportunities. Many cities in the U.S. raised taxes, while we lowered them. We understood that we could be at the forefront of innovation and invited them,” he added.
Officials from the Rio de Janeiro prefecture told the publication that authorities are considering offering additional tax breaks for payments in Bitcoin. The discount could reach 10%; they are currently examining the legal aspects.
As reported earlier, Suárez also confirmed that he was open to studying the possibility investing 1% of Miami’s budget in digital gold.
In March 2021, he spoke of a desire to make the city a Bitcoin-mining hub and to create a hub for cryptocurrency mining.
Plans to expand the use of digital gold in Miami also included the possibility of paying city employees’ salaries in BTC.
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