Rio De Janerio Adopts A Bitcoin Standard
El Salvador was the first domino to fall and it looks like their improvement in GDP and interest in the country has encouraged other Latin American countries to consider a bitcoin standard. We've heard rumors of Paraguay adding some bitcoin-friendly regulations in the past, but that news has gone quiet.
Then recently we heard Strike, the company that helped El Salvador move towards a bitcoin standard launched in Argentina a country that has been ravaged by currency debasement and sovereign defaults.
Now it looks as if Brazil could be getting in on the action with the city of Rio De Janeiro adopting a bit of a bitcoin standard.
Tax rebate
To get the ball rolling and build up a bitcoin position, the city will encourage citizens to pay their local taxes in bitcoin and offer a 10% discount to anyone who settles their tax obligations in bitcoin.
This encourages people in the city of 6.7 million people, roughly the same amount as the whole of El Salvador, to hold bitcoin. No one likes to pay taxes and anyone who wants to reduce their tax bill would now be keen on holding a position in bitcoin, even if they did not want to be a bitcoin.
This increases demand for bitcoin in Rio. As citizens pay their taxes, it also helps build a treasury for the Rio local government to leverage in the future.
I would have expected such a move from some American cities in Floria and Texas that have been pretty outspoken about bitcoin, but it seems Latin America is taking the lead on adopting a bitcoin standard.
Taking a position in bitcoin
According to several reports, which I have referenced below, there has been an announcement from Eduardo Paes, the mayor of Brazilian city Rio de Janeiro, that the city will embrace Bitcoin. The city of Rio will intend to invest 1% of the city's treasury reserves in bitcoin as a strategic reserve asset. Similar to the way El Salvador has built up a national reserve of bitcoin.
El Salvador currently holds around 1,390 bitcoins, which they picked up for a steal if we look at the fact that it is worth over $58 million at current prices and I am sure that will continue to pay dividends into the future.
Brazil has a history of country changes
Brazil has changed its currency twice in its history so the people of the country are no strangers to the concept. Their local fiat currency the Brazilian real has not done all that well when compared to other Brics and G7 nations so it makes sense for them to look into diversifying into an option like bitcoin.
It's going to be interesting to see if this roll out is a success on the city level and if this could force other cities to compete as more citizens flock to Rio to reap the benefits of the reduced taxes.
Bitcoins biggest grifter reports
While I am no fan of Pomp, he does break news early as he continues to build his YouTube grifting business. He speaks bitcoin but he shills all kinds of shitcoin and bullshit projects, so take what he says with a pinch of salt, you can find his report below.
Sources:
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