Rio De Janeiro Integrates Bitcoin into City Plan – Bitcoin Magazine
This is an opinion editorial by João, founder of Boletim Bitcoin, a Brazilian site focused on Bitcoin, and contributor to Bitcoin Magazine.
In an exclusive interview with the Brazilian portal Boletim Bitcoin, Andrea Senko, Rio de Janeiro’s finance and planning secretary, commented on the city’s use of bitcoin and cited the likely purchase of bitcoin for the city government’s coffers.
Rio De Janeiro and Bitcoin
For a few months now, Rio de Janeiro’s city council has been getting closer to bitcoin. On a number of occasions, city representatives, such as Mayor Eduardo Paes, have commented on their plans.
During Rio Innovation Week, Eduardo Paes met Miami Mayor Francis Suarez, who wants to integrate bitcoin in Miami. Paes stated that Miami is one of the inspirations for Rio de Janeiro and later said that the city was studying “to use 1% of the treasury for cryptocurrency.”
During the event, Finance Secretary Pedro Paulo also stated that the city government is open to receiving tax payments in bitcoin. Paulo said: “We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins.” This will encourage the use of bitcoin as payment.
Plans for the city
When asked about the idea of the city integrating bitcoin, Senko highlighted it as a pillar of Rio de Janeiro’s technological growth.
“Rio, due to its vocation as a global city, is aware of the world’s most important changes and innovations, and always places itself at the forefront of these issues. The city looks to the future, and the City Hall has followed the technological and economic advances […]. The goal is to make Rio Brazil’s crypto ecosystem, and help the city become the innovation and technology capital of the country. “
To help with the integration, Rio de Janeiro’s city government created the Municipal Committee for Crypto Investments (CMCI). When asked about the activities under discussion in the institution, the Financial Secretariat stated:
“The Municipal Committee for Crypto Investments (CMCI), established in March 2022, is working on a policy for investments in crypto assets and a governance model for decision-making.”
Senko commented on the idea of the city allocating 1% of the mayor’s treasury in bitcoin:
“This purchase will follow a methodology that is mindful of the fluctuations and risks in this market and is being developed by City Hall.”
On the adoption of Bitcoin by El Salvador and the Central African Republic, Senko said it is “positive that the country is open to the crypto asset market.”
Despite the Rio de Janeiro representative’s positive statements about bitcoin adoption, it was reported that no other local municipality has contacted her to jointly study the possibility:
“To date, we have not been approached by other public entities to study this possibility together with Rio de Janeiro.”
Despite the isolated initiative at the municipal level in Rio de Janeiro, Brazil is following a positive regulatory path for bitcoin adoption. In May of this year, the Brazilian government published a resolution zeroing out the tax on the import of bitcoin mining equipment, as long as the activity takes place with renewable energy.
Due to the hot tropical climate and economic conditions that are not very favorable for the activity, large-scale mining is practically non-existent in the country. However, the change in legislation could unlock a giant market since the country of more than 210 million people has a predominantly green energy matrix, mainly from hydropower plants.
Cities and Bitcoin
Over the past year, a number of cities have begun to integrate in various ways with bitcoin, in what appears to be the beginning of modest adoption by governments.
In March 2022, the city of Lugano, Switzerland established bitcoin as a legal currency, as well as committing to becoming an educational hub for the cryptocurrency.
In addition, Lugano will host the Plan B Forum, an event focused on discussing the global adoption of bitcoin and the defense of freedom of expression.
The city council of Fort Worth was the first city in the United States to start a bitcoin mining operation. Through a grant from the Texas Blockchain Council, an institution focused on mining in the state, three mining platforms were installed in the city’s Department of Information Technology Solutions.
“With blockchain technology and cryptocurrency revolutionizing the financial landscape, we want to transform Fort Worth into a tech-friendly city,” said Mayor Mattie Parker.
Probably the most infamous case of a city adopting bitcoin is Miami, which serves as an inspiration for Rio de Janeiro. Through a series of initiatives by Mayor Francis Suarez, the city is incorporating bitcoin into its local economy.
During the Rio Innovation Week event, Francis Suarez confirmed his commitment that taxes can be paid in bitcoin:
“I see very quickly a world where the Satoshi system is what is used to make payments; we have to make that leap,” the mayor said. “We need people to understand that bitcoin is increasing in value, and yes, we want you to have bitcoin, a better currency, frankly.”
In this way, cities spontaneously begin to integrate with bitcoin. The network effect and the success of becoming a sovereign store of value can radically change which regions take it first.
Miami, Rio de Janeiro, Lugano, El Salvador and other regions are taking the lead in global bitcoin adoption in what could be called the “Digital Gold Rush.”
Should bitcoin become the dominant money, the wealth offered by a bitcoin standard has the potential to transform these regions into the world’s new financial and technological capitals, powered by the use of sound money and the use of revolutionary technology.
This is a guest post by João. Opinions expressed are entirely their own and do not necessarily reflect the opinions of BTC Inc. or Bitcoin Magazine.
