Rio De Jeneiro’s Mayor Reveals 1%Of Its Treasury Reserves Will Be Poured Into Cryptocurrencies

Published by

Brazil’s second most populous city, Rio de Janeiro, is still on course to invest in crypto. The mayor of the city, Eduardo Paes, announced

that Rio plans to allocate 1% of its treasury reserves to cryptocurrencies. Chicão Bulhões, the city’s secretary of economic development, reconfirmed this in an interview today. Bulhões maintained that Rio de Janeiro was still aiming to become a global crypto hub and was already directing resources at the project.

Interest in Rio de Janeiro’s plan to allocate 1% of its treasury to crypto has increased significantly

The Brazilian city of Rio de Janeiro is working towards allocating 1% of its treasury reserve to cryptocurrencies. The move, which was inspired by the US city of Miami, has Rio aiming to become a global crypto hub by being more crypto-friendly. Speaking on the Nexo sponsored episode of First Mover, Chicão Bulhões, threw some more light on the status of the city’s plans.

Bulhões, who is the city’s secretary of economic development, noted that the first step was to sensitize and galvanize support from the city’s residents. While much still needs to be done to change the citizens’ perception of crypto, the government’s efforts in this direction have been paying off as interest in the asset class has increased, Bulhões points out.

#advanceampads0#

Bulhões added that the benefits the city stands to get have also contributed to the growing interest. This is because Brazil has been struggling with inflation and digital currencies like Bitcoin are an inflation hedge.

 The last four years have been difficult for Brazil with inflation. And we know that some cryptocurrencies are deflationary and can be used for people not to lose purchasing power. That got people interested in the possibility of having an alternative to central banks, and having more possibilities to fight inequality, he noted.

Crypto adoption is reaching new levels

Like Rio’s government, cities are paying more attention to cryptocurrencies. Last year, it was proposed that workers be paid in cryptocurrencies in Brazil. New York, Vancouver, San Francisco, Tel Aviv are a few that have shown strong leanings to welcoming crypto investments.

The crypto market has also come under the radar of countries that can no longer ignore its massive growth. Russia is one such country. Russia caused some turbulence recently in the crypto market after its central bank made known plans to ban crypto in the country. They have turned more tolerant to crypto as Vladimir Putin noted that Russia would rather regulate the market.

Olivia Brooke

Olivia’s interests spans across the Cryptocurrency and NFT and DeFi industry. She remains as fascinated by cryptocurrencies today, as she was back in 2017, when she first started reading up about them. She’s actively on the lookout for the latest Crypto related stories. When she’s not writing, she’s catering to her pet chihuahua, or curating vegan recipes. Reach me at Olivia@coingape.com

Share
Published by

Recent Posts

  • Exchange News

Just In: CZ Says Binance Protects Users Before Shareholders

Binance on Monday made a clarification to its users in the backdrop of a recent…

May 24, 2022
  • Stablecoin News

Hard Fork Vs Genesis Chain: Terra Team Clears Air Around Debate

In an effort to clear confusion over the amended Terra Ecosystem Revival Plan 2, the…

May 24, 2022
  • News

Prominent Investment Officer Predicts More Downside For Bitcoin Price, Here’s Why

Global Chief Investment Officer, Scott Minerd, has given his take on what the future holds…

May 23, 2022
  • News

Investors Move $141 Million Out Of Crypto: CoinShares Report

According to a recent report from the digital asset managing platform Coinshares, a total of…

May 23, 2022
  • Stablecoin News

Just In: S. Korea Police Seek To Guard LUNA Assets

Even as the South Korean authorities try to probe the disastrous Terra crash, a new…

May 23, 2022
  • News

Just-In: South Korea May Sue Crypto Exchanges Over Terra Crash

Many prospects have come under the consideration of global cryptocurrency regulators since the brutal Terra…

May 23, 2022