The Brazilian city of Rio de Janeiro is taking steps towards actively investing in cryptocurrencies. Now, 1% of the city’s treasury will be invested in crypto, offering the administration some financial buffer in case fiat money experiences a sharp downturn.
Chicão Bulhões, an official for Rio, spoke to CoinDesk and explained the idea behind the investment. “We know that Bitcoin (BTC) is volatile, that some people criticize us for that, but it is the future, and Rio wants to be a reference for the world as a cryptocurrency-friendly city, like Miami or Zug in Switzerland,” he said.
He pointed out that BTC is not a cryptocurrency that enjoys the popular vote, mostly because of several high-profile financial schemes that involved cryptocurrencies. Bulhões was most likely referring to a case dating to August last year when police busted members of a criminal organization that had inflicted millions worth of damages.
Police managed to seize $28.8 of crypto funds. Despite this setback, Rio feels like it stands to benefit from future developments. He is confident that Brazil can turn to BTC – at least to some extent – to offset the ravaging effects of inflation, for one. He also drew a parallel with the current push undertaken by Miami, a city that is similar to Rio in terms of climate and weather characteristics, Bulhões explained that Miami is openly trying to advertise itself as a “crypto capital.” While he did not go so far as to call Rio a crypto megapolis, he hinted that keeping an open mind towards crypto may actually benefit the city. The city is presently discussing the possibility of making BTC payments tax free. If you want to check out the latest ways to use your crypto recreationally, you may explore the options available at 1xBit, Bitcasino, and FortuneJack.