Rio De Janeiro To Become Brazil’s Cryptocurrency Capital?

Rio de Janeiro, a city better known for its beaches and wild street parties, wants to become Brazil’s cryptocurrency capital. 

According to statements from mayor Eduardo Paes, Rio de Janeiro will invest 1% of its treasury in cryptocurrency. 

 “We are going to launch Crypto Rio and invest 1% of the Treasury in cryptocurrency.”

The mayor made the announcement during a joint lecture with Miami Mayor Francis Suarez at the Rio Innovation Week,  an event that deals with the modernization of the city.

Tax Incentives and Brazil’s Crypto Regulation

Rio mayor Eduardo Paes announced the creation of a working group to study ways to incentivize the use of crypto and boost the city economy, such as offering discounts when paying taxes with Bitcoin. However, he also stated that studying regulations to apply these changes effectively is necessary.

Chicão Bulhões, secretary of the economic development and innovation team, stated that these tax incentives focused on attracting more companies involved with cryptocurrency from other country regions. 

Like India, cryptocurrency regulation in Rio De Janeiro is still a work in progress, with a bill approved for consideration in the Senate. Brazil looks set to follow El Salvador’s example and make Bitcoin legal tender if it gets approved.

Crypto Adoption in Latin America

The crypto wave is sweeping across Latin America and taking hold in large economies. Argentina, Brazil, Chile, Peru, and Colombia were among the world’s top 15 countries with the highest levels of cryptocurrency adoption, according to Statista. Latin American countries are ideal for crypto adoption for various reasons, and many revolve around increasing citizens’ financial inclusion and promoting financial stability. There is no doubt that El Salvador has a role in igniting these cryptocurrency adoptions. 

One of the most common arguments for Latin American countries to adopt cryptocurrencies is based on unbanked Latin American citizens. In Brazil alone, there were over 16.3 million unbanked citizens. Without banks, they lack access to important financial services, such as taking out loans, building wealth, earning interest, and saving money securely. This is where cryptocurrencies like Bitcoin and ETH can wear the hero cape and provide solutions to the unbanked.