Rio de Janeiro has decided to allow residents to pay their property taxes in the form of cryptocurrency starting in 2023. This is the first Brazilian city to do so. The municipalities that are willing to facilitate these cryptocurrency payments for taxes in Rio are required to register with the city authorities and demonstrate compliance with the Brazilian SEC regulations.
Each tax payer will be allowed to deposit their funds with more than one cryptocurrency. Upon completion, the hired cryptocurrency firms will then convert the payments to the Brazilian Real for the treasury.
Rio de Janeiro is a global city, which is driven by technology and economic advancements in the digital financial system. We want to be the country''s first capital of innovation and technology, according to CoinTelegraph reports.
The development comes amid the crypto boom in Brazil, which made it to international headlines.
According to a September survey, Brazil''s 77 percent population trusted digital assets.
This is the first time that a total of 12,053 organizations have declared holding cryptocurrency in Brazil. This is a six percent increase from the 11,360 organizations that had declared holding cryptocurrency in July this year.
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The two most popular cryptocurrency Bitcoins are held by Brazilian organizations, followed by stablecoin Tether.
cryptocurrencies being used as a way of paying taxes is not new as a concept. Many parts of the United States, like Wyoming, Arizona, and Utah, are already dabbling in the idea.