Rio de Janeiro's mayor, Eduardo Paes, has announced that bitcoin will receive 1% of the city's money.
Rio de Janeiro will become the first Brazilian city to buy cryptocurrencies as a store of value if he keeps to his plan.
Rio is getting ready to join on the Bitcoin bandwagon.
Mayor Eduardo Paes discussed his ambitions during Rio Innovation Week, where he gave a lecture alongside Bitcoin-loving Miami Mayor Francis Suarez.
Suarez's efforts to transform Miami into a cryptocurrency hub have been praised by the 52-year-old mayor of the Brazilian Social Democratic Party.
Miami's mayor has stated that he is open to the notion of placing 1% of the city's treasury reserves into bitcoin.
While Miami has established itself as the bitcoin capital of the United States, Rio aspires to become the cryptocurrency capital of South America.
Because Rio de Janeiro is Brazil's financial capital, the possible adoption of bitcoin in Rio is a big step forward for the underlying cryptocurrency's development.
It also has one of the largest economies in Latin America and one of the world's fastest developing economies.
Mayor Pais wants to grant a ten percent tax break to bitcoin investors who pay in the main digital currency.
Last year, the mayor of Miami expressed similar ambitions, stating that people would be able to pay taxes in bitcoin rather than dollars.
Eduardo Paes isn't the first politician in Brazil to declare support for the major cryptocurrency.
Congressman Luis Goularte Alves introduced a measure in November 2021 that would allow public and private sector workers to be paid in bitcoin.
Employees will be able to choose the exact amount of their wage that they want in cryptocurrency and what they want in fiat currency, according to the bill.