The city of Rio de Janeiro opened the accreditation on Tuesday (11) so that companies that convert bitcoin to fiat currency can present themselves, so that the payment of taxes begins to be accepted by the city.
For a few months now, Brazilians have been following Rio’s journey as the possible first Brazilian capital to join bitcoin as a new means of paying taxes.
In a conversation with Francis Suarez, Mayor Eduardo Paes said he was willing to make Rio a high-tech city. Before that, he saw an example for Brazil in Miami.
Rio City Hall Opens Accreditation For Bitcoin Brokers To Facilitate New Payment Method
Since Paes’ announcement, a Cryptocurrency Committee has been set up in the city to discuss how it would be possible to accept the new payment method.
The regulation of cryptocurrencies in Brazil was expected, but as there was no approval in the National Congress, Rio de Janeiro did not wait and the first steps have already started.
According to a publication in the Government Gazette of the municipality this Tuesday, companies specializing in cryptocurrencies can now register to offer their customers the option to pay taxes with Bitcoin and other cryptocurrencies.
“Companies specializing in cryptocurrency operations will be able to register with the municipality to offer their customers the option to pay for the IPTU 2023 with digital currency. The initiative, launched by decree, will make Rio the first city in Brazil to allow taxpayers to pay the tax through crypto assets.
The pioneering initiative in Rio still expects the amounts paid by taxpayers in cryptocurrencies to be converted into Brazilian real and 100% of the amount to go to the municipal treasury.
That is, Rio de Janeiro is not allowed to receive in cryptocurrencies directly, nor to store the assets.
Bureaucracy for companies to cooperate with the city of Rio de Janeiro
To be a Rio de Janeiro registered company and work with the conversion of cryptocurrencies to the city, it is important for interested parties to go through a bit of bureaucracy.
This is because it is necessary to have a valid and accredited CNPJ in the municipality, in addition to complying with the provisions of the Central Bank of Brazil for financial institutions, also having a service contract with the collection banks of the city hall.
All registered companies are listed on the official website of Rio City Hall, that is, the population is not allowed to send cryptocurrencies to others, which could be a scam.
Source: Live Coins
John Cameron is a journalist at The Nation View specializing in world news and current events, particularly in international politics and diplomacy. With expertise in international relations, he covers a range of topics including conflicts, politics and economic trends.
