This article is from www.blocknews.com.br and the original article can be read here in Portuguese
Following in the footsteps of Rio de Janeiro, the city of São Paulo will also be able to adopt cryptocurrencies for the payment of the Urban Property and Territorial Tax (IPTU). Bill 01-00344/2022, authored by councilor Marlon Luz (MDB), authorizes the capital of São Paulo to receive the tax in cryptocurrencies.
The councilor seeks justification for the proposal by pointing out the growth of crypto assets around the world and the respective need for public authorities to adapt to technological advances.
“São Paulo is the economic hub of Brazil and that’s why it is necessary for the citizen of São Paulo to be able to pay their taxes in any way that is available in the market today”, explains Marlon Luz in the presentation of the PL.
With the bill going through the Chamber, the mayor of São Paulo, Ricardo Nunes, should be urged to publicly comment on how – and if – the crypto ecosystem will be embraced by the municipal administration.
Rio de Janeiro will accept crypto in 2023
At the end of March, the city of Rio de Janeiro announced that it will accept cryptocurrencies in the payment of IPTU from 2023. The initiative is in line with a broader strategy to make the city a blockchain and cryptocurrency hub.
Although the citizen can pay the IPTU with cryptocurrencies, the amount in reais goes to the city hall cashier. For this, companies will be hired to convert the cryptos. Thus, the city avoids the risk of having cryptocurrencies in cash that are volatile assets. For public finances, money needs to be stable so as not to have a negative impact on spending and investment.
The government also created the Municipal Committee for Cryptoinvestments (CMCI), which should develop a methodology for public investment of resources in cryptoassets.
According to the municipal secretary of Finance and Planning, Pedro Paulo, in the future, other services may be paid in cryptocurrencies, such as taxi. “Going further, we will use these crypto assets to stimulate the arts, culture and tourism, through NFTs (non-fungible tokens), and create a solid and responsible governance policy to evaluate the realization of crypto investments.”
According to the municipal government, there will be a public hearing to receive and present suggestions from civil society for the development of NFTs in the city of Rio. There is also the promise of creating spaces for artists to make interventions that would later become NFT. These tokens would go to a blockchain chosen by the City.
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