Rio De Janeiro Integrates Bitcoin Into City Map BlockBlog
This is an opinion piece by João, founder of Boletim Bitcoin, a Brazilian Bitcoin-focused website and contributor to Bitcoin Magazine.
In an exclusive interview with the Brazilian portal Boletim BitcoinAndrea Senko, Rio de Janeiro’s finance and planning secretary, commented on the city’s adoption of bitcoin and cited the likely purchase of bitcoin for city government coffers.
Rio De Janeiro And Bitcoin
For the past few months, the Rio de Janeiro town hall has been getting closer to bitcoin. On several occasions, city officials, such as Mayor Eduardo Paes, have commented on their plans.
During Rio Innovation Week, Eduardo Paes met with Miami Mayor Francis Suarez, who is looking to bring bitcoin to Miami. Paes said Miami is one of Rio de Janeiro’s inspirations and later said the city was looking at “applying 1% treasury to cryptocurrency.”
During the event, Pedro Paulo, Secretary of Finance, also said that the city government is ready to receive tax payments in bitcoins. Paulo said: “We are studying the possibility of paying taxes with an additional discount if you pay with bitcoins.” This would encourage the use of bitcoin as a means of payment.
Maps for the city
Asked about the idea of the city integrating bitcoin, Senko pointed to it as a pillar of Rio de Janeiro’s technological growth.
“Rio, through its vocation as a global city, is aware of the main changes and innovations in the world, and always places itself at the forefront of these challenges. The city is turned towards the future, and the City Council has followed the technological evolution and economic advances […]. The goal is to make Rio the crypto ecosystem of Brazil, helping to make the city the innovation and technology capital of the country. “
To help with integration, the city government of Rio de Janeiro created the Municipal Committee for Crypto Investments (CMCI). Asked about the activities being discussed by the institution, the Finance Secretariat said:
“The Municipal Crypto Investment Committee (CMCI), established in March 2022, is working on a policy for investing 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 attentive to the fluctuations and risks of this market and is being developed by the town hall.”
Regarding the adoption of Bitcoin by El Salvador and the Central African Republic, Senko said he was “positive that the country is open to the market for crypto assets”.
Despite the Rio de Janeiro representative’s positive statements regarding the adoption of bitcoin, it was reported that no other local municipality had contacted her to jointly explore the possibility:
“To date, we have not been approached by other public entities to explore this possibility 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 issued a resolution canceling the tax on the import of equipment for bitcoin miningas long as the activity is carried out with renewable energies.
Due to the hot tropical climate and the unfavorable economic conditions for the activity, large-scale mining is practically non-existent in the country. However, the change in legislation could unlock a gigantic market since the country of more than 210 million inhabitants has a predominantly green energy matrix, coming mainly from hydroelectric plants.
Cities and Bitcoin
Over the past year, a number of cities have started integrating with bitcoin in different ways, in what appears to be the beginning of modest adoption by governments.
In March 2022, the city of Lugano, Switzerland established bitcoin as legal tender, while also committing to becoming an educational center for cryptocurrency.
In addition, Lugano will host the Plan B Foruman event focused on discussing the global adoption of bitcoin and advocating for free speech.
The city government of Fort Worth was the first city in the United States to launch a bitcoin mining operation. With a grant from the Texas Blockchain Council, an institution focused on advocating for mining in the state, three mining rigs have been installed in the city’s Information Technology Solutions Department.
“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 notorious case of a city adopting bitcoin is Miami, which serves as inspiration for Rio de Janeiro. Through a series of initiatives by Mayor Francis Suarez, the city is integrating bitcoin into its local economy.
During the Rio Innovation Week event, Francis Suarez reaffirmed his commitment that taxes can be paid in bitcoin:
“I very quickly see a world where the Satoshi system is what is used to make payments; we have to take that leap,” the mayor said. “We need people to understand that bitcoin is going up in value and yes we want you to have bitcoin, a better currency, frankly.”
In this way, cities begin to spontaneously integrate with bitcoin. Its network effect and success in becoming a sovereign store of value could radically change which regions adopt it first.
Miami, Rio de Janeiro, Lugano, El Salvador and other regions are leading global bitcoin adoption in what could be called the “digital gold rush”.
Should bitcoin become the dominant currency, the wealth provided by a bitcoin standard has the potential to transform these regions into new global financial and technology capitals, through the use of sound currency and the adoption of breakthrough technology. .
This is a guest post by João. The opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc. or Bitcoin Magazine.