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Rio De Janeiro will be the first city in Brazil to collect property tax in crypto

Rio De Janeiro, Brazil’s most populous city, is moving towards becoming a hub of crypto. It will become the first city in Brazil to take a property tax in crypto next year. The City Hall of Rio De Janeiro has reported that firms will be hired to convert cryptocurrencies into Brazilian currency. Rio de Janeiro also plans to develop a non-fungible token (NFT) collection containing images of popular tourist destinations in the city. 

Bloomberg reports According to reports, the city’s mayor Eduardo Paes had proposed to pay the property tax in crypto earlier this year. This proposal has been accepted. This information was given at an event recently organized by the Municipal Council of Rio de Janeiro. The report of the Crypto Rio study was also presented in this. The study was conducted to evaluate a percentage of the city’s Treasury investment in crypto and the city’s cryptocurrency issuance plan. 

Last month, the Economic Affairs Committee of Brazil’s Senate approved a bill to regulate the local cryptocurrency market. In this, along with defining the definition of virtual assets, information about the responsibilities of service providers has been given. There is also a provision for fines for those who violate the rules. Brazil is also working on developing a Central Bank Digital Currency (CBDC). Earlier this month Brazil’s central bank selected projects from some firms to assess the possibility of developing a CBDC. Brazil’s CBDC testing could begin in the second half of this year. 

In recent months, some countries have planned to develop CBDCs. The Federal Reserve in the US has been asked to consider the possibility of launching a CBDC. African country Ghana soon CBDC can launch. Ghana plans to digitize its economy and curb corruption, a blockchain-based digital currency ‘eCedi’. CBDCs are regulated by central banks and are similar to cryptocurrencies. It is built on a blockchain network. This makes transactions centralized and traceable. 

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