Rio de Janeiro has decided to let residents pay their property taxes in the form of cryptocurrencies starting in 2023. With this, Rio has become the first Brazilian city ever to do so. The companies that are willing to facilitate these crypto payments for taxes in Rio are mandated to register with the city authorities and prove compliance with the Brazilian SEC requirements. Getting the Know-Your-Customer (KYC) details of all users is among the top requirements for crypto firms to operate in the Latin American nation.
Each tax payer will be allowed to deposit their funds with more than one cryptocurrency. The hired crypto firms will then convert the payments to the Brazilian Real for the treasury.
“Rio de Janeiro is a global city. Therefore, we are following technology and economic advances in the universe of digital financial assets. We have a look to the future and we want to become the country’s capital of innovation and technology. Our city is the first in Brazil to offer the taxpayer this type of payment,” a CoinTelegraph report quoted Rio Mayor Eduardo Paes as saying in a statement.
The development comes in the backdrop of the crypto boom in Brazil, that made it to international headlines.
In a September report, Bitstamp said that 77 percent population of Brazil trusted digital assets.
Presently, a total of 12,053 organisations have declared holding cryptocurrency in Brazil. This marks a six percent hike from the 11,360 companies that had declared holding crypto around July this year.
Bitcoin, followed by stablecoin Tether are the two most popular cryptocurrencies held by Brazilian organisations.
Meanwhile, the use of cryptocurrencies as a mode of paying taxes is not new as a concept. Many parts of the US like Wyoming, Arizona, and Utah are already dabbling in the idea.
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