Rio de Janeiro In Brazil To Accept Property Taxes In Cryptocurrencies

Rio de Janeiro, one of the most prominent cities in Brazil with a population of over 6.5 million wants to promote the usage of cryptocurrencies.

The city wants to encourage the locals to pay their property taxes using cryptocurrencies in the city.

Going forward, the government of Rio de Janeiro wants cryptocurrency firms to operate as collectors of property taxes. According to government officials, they aim to do it in 2023.

The decree Published on October 11

On October 11, the authorities in Rio de Janeiro shared published a decree where they talked about offering cryptocurrency payments access to the tax property payers.

As per Rio de Janeiro, the property taxpayers in the city would be allowed to pay their property taxes using cryptocurrencies.

The property taxpayers would be allowed to make their payments using fiat currencies as well.

The latest move would make Rio de Janeiro the first ever city in Brazil to accept property taxes in the form of cryptocurrencies.

The city is going to give a huge push to cryptocurrency adoption in Brazil, especially, within its jurisdiction. With crypto assets, the locals have more than one option to pay their property taxes.

Multiple Crypto Assets

As Rio de Janeiro works on launching the new utility, it aims to offer a variety of cryptocurrency assets to the locals when making payments.

This way, the locals would have more than one type of cryptocurrency asset in their access to make property tax payments. Going forward, the city aims to add more options for locals to pay taxes.

Requirement for Companies Offering the Service

The city authorities have announced that the companies wanting to offer property tax payment services to the locals must get them registered.

To offer the services, the firms must be registered by the Securities and Exchange Commission (SEC) of Brazil. The firms must comply with all the regulatory guidelines while providing services to the locals.

Any company or organization offering property tax payment services to the locals in cryptocurrencies without registration would be considered illegal.

Services by Registered Companies

The firms who get registered through the Brazilian SEC would be able to offer conversion of crypto into fiat and payment services in cryptocurrencies.

As the locals make payments in cryptocurrencies, the crypto will be converted into fiat before being sent to the city. The taxpayers would incur no extra costs or charges for making transactions in crypto.

Governments are Now Adopting Crypto

Over time, other countries and cities have also started adopting cryptocurrencies as a mode of payment for taxes.

In the United States, one of the states known as Colorado has also made a similar announcement as Rio de Janeiro. It has announced that the locals would be allowed to pay taxes via cryptocurrencies.