The Latin American country Brazil is set to adopt Bitcoin in the form of real estate tax payments from 2023 onwards. Starting with Brazil’s capital city Rio de Janeiro will be going to be the first city for accepting Bitcoin (BTC) payments for taxes from the urban real estate sector.
However, there are no official details about the proposed plan where crypto will be accepted for taxes in the country. Many crypto news channels are waiting eagerly for more information to be revealed by the authorities on this matter.
According to the announcements made by Chicão Bulhões who is the Secretary of Economic Development, Innovation, and Simplification, new pro-crypto tax laws will be enforced from 2023 onwards. Also, the official statement from the Rio de Janeiro city Mayor Eduardo Paes came on March 26 stating:
To enable the operation, the municipality will hire companies specialised in converting crypto assets into reais (the Brazilian currency). In this way, the City Hall will receive 100% of the amount in the currency.Rio de Janeiro city Mayor Eduardo Paes
As stated, it is clear that Brazil doesn’t want to devalue the native fiat currency and will convert all the collected crypto into reais (Brazilian currency) to receive 100% of the amount. Earlier, Paes shared his views on converting the city’s 1% of the total treasury into crypto. He also disclosed about providing discounts on taxes to the people making payments in cryptocurrency.
Binance to start an office in Rio soon
Even Binance CEO Changpeng ‘CZ’ Zhao exchanged dialogues with the city’s Mayor Paes in regards to opening an office in the city. According to the Twitter post, ‘CZ’ has closed a deal with Rio’s mayor to open a Binance office in the city. Related to this, the mayor happily gave a key to the city which certainly signifies that Binance has unlocked more trading capacities for itself in Latin America.
Bullish Brazilians for Bitcoin
Meanwhile, the people of Rio are welcoming Binance open-heartedly and are hopeful for better prospects for themselves. Whereas, Valor Investe a popular financial newspaper of Brazil studied the bullish behavior of Brazilians for Bitcoin. It reported about 48% of the total population of Brazil wanted Bitcoin (BTC) as its national currency while 21% rejected the idea. Notably, Brazil is quite deterministic about Bitcoin even when it is highly volatile in the market.
Though BTC has high-risk factors, 39% of the people of Brazil consider Bitcoin a solution for ‘inflation’ and a medium of ‘financial stability. On top of that, 37% do realize the potential advancement of blockchain technology and 55% sees a good investment sector for themselves.