Rio de Janeiro residents will pay for real estate in cryptocurrency

The Brazilian metropolis of Rio de Janeiro will allow city residents to use cryptocurrency to pay property taxes starting in 2023. The city’s municipal gazette published a resolution stating that Rio «hires companies specializing in the conversion of crypto assets into fiat.» This will allow Rio residents to pay property tax, called the IPTU (urban and land tax), using digital assets. Citizens will be able to pay IPTU at once or divide the amount into several months and pay in installments.

The initiative is the brainchild of Mayor Eduardo Paes, an official who is positive about the introduction of cryptocurrencies into Brazil’s market economy. Earlier, Paes announced ambitious plans to create a municipal cryptocurrency treasury that would be used for the needs of Rio de Janeiro.

Paes said: «Rio de Janeiro is a global city. We follow the technological and economic developments in the world of digital financial assets. We look to the future and want to help Rio become the capital of innovation. Rio is the first city in Brazil to offer this option to taxpayers.»

Back in the summer, the Brazilian authorities were working on a bill to tokenize all gold on the blockchain. The procedure should ensure transparency in the industry and prevent irregular mining of precious metals. The implemented changes will be aimed at establishing new rules for buying, selling and trading Brazilian gold, which will then be registered on the blockchain.

Recently, Brazilian law enforcement agencies discovered a large-scale cryptocurrency pyramid scheme called Forcount, whose representatives offered users to invest in the Mindexcoin token. In addition to ordinary customers, Brazilian celebrities who advertised the company also fell victim to the fraudulent scheme. Customers were offered to buy a Mindexcoin token and receive 20% of the return on their investment every month. In fact, Mindexcoin had no market value and was not listed on any exchange.