Rio de Janeiro plans to accept property tax payments in multiple cryptocurrencies.
One of the most popular cities in Brazil, Rio de Janeiro, is planning to accept property tax payments in crypto.
According to the decree published on October 11th, the move would make Rio de Janeiro the first Brazilian city to accept cryptocurrency as a form of payment for property taxes.
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The Municipality of Rio de Janeiro expects to allow customers to pay their property taxes in multiple cryptocurrencies. Moreover, in the future, the institution plans to expand this initiative.
The decree highlighted that companies willing to work on this initiative have to be registered in the city and meet all requirements issued by the Brazilian Securities and Exchange Commission (SEC). The crypto companies working on this initiative will be responsible for providing crypto payment services and converting cryptocurrency to fiat.
After receiving payment and converting it to Brazilian real, these companies will transfer the collected funds to the city. The Municipality assured customers that they wouldn't have to pay additional conversion fees.
When talking about Rio de Janeiro's plans to allow payments for property taxes in crypto, Mayor Eduardo Paes noted:
Rio de Janeiro is a global city. Therefore, we are following technology and economic advances in the universe of digital financial assets. We have a look to the future and we want to become the country’s capital of innovation and technology. Our city is the first in Brazil to offer the taxpayer this type of payment.
Rio de Janeiro is not the only city in the world working on allowing tax payments using crypto. In September, the western US state of Colorado let Coloradans pay their state taxes using crypto. Apart from Colorado, the state of Utah is also planning to allow residents to pay their statewide taxes using crypto, starting January 1st, 2023.
Brazil is slowly becoming one of the most crypto-friendly countries in the world. The Federal Revenue of Brazil report showed that the number of organizations declaring their crypto holdings increased by 6,1% since July. It proves that the interest in crypto in the country is growing.
