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Rio de Janeiro to store 1% of treasury reserves in Bitcoin, watershed moment for crypto

  • The City of Rio de Janeiro has announced that 1% of treasury reserves will be allocated to Bitcoin. 
  • In a watershed moment for Bitcoin, the Brazilian city is following Miami's footsteps. 
  • Mayor Eduardo Paes revealed that Crypto Rio would be launched soon, alongwith option to pay taxes in Bitcoin.

Another global city followed in the footsteps of Miami, announcing plans to invest 1% of their treasury reserves in Bitcoin. The mayor unveiled plans to collect taxes in Bitcoin. 

Brazilian city prepares to store reserves in Bitcoin

The Brazilian city of Rio de Janeiro has decided to hold 1% of its treasury reserves in Bitcoin. Eduardo Paes, mayor of the Brazilian city, was quoted as saying:

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

According to the mayor, Rio de Janeiro would soon start accepting taxes in Bitcoin. The city has followed in the footsteps of Miami. Mayor of Miami Francis Suarez shared his thoughts on Rio de Janeiro's Bitcoin decision. 

Suarez believes that Rio's connection with Miami is crucial, as both are global cities. The two cities attract international people and businesses; therefore, adopting cryptocurrencies in some form is essential. 

Suarez added that events like the Rio innovation week are crucial to strengthening the Brazilian city's place as a global hub. 

Suarez said:

We created a tsunami of opportunity. Many cities in the United States were raising taxes, and we lowered them. We understood that we could be at the forefront of innovation, and we invited creators here. 

Bitcoin price is above $42,000 as the outlook of investors and traders remains bullish. FXStreet analysts have evaluated the Bitcoin price trend and believe that the asset remains at risk of crashing to $39,000. 

Author

Ekta Mourya

Ekta Mourya

FXStreet

Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.

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