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Brazil is experiencing an increase in the adoption of crypto assets, even for tax payments. According to a bill, the city of São Paulo can accept digital currencies as a form of payment for IPTU, a municipal property tax

The legislative proposal was presented by councilman Marlon Lu (MDB). The city will be the second Brazilian capital to adopt crypto assets for tax payments if approved.

Bill 01-00344/2022 aims to integrate the technological advances of the crypto sector within the public realm. In addition to cash, citizens will be able to use crypto assets to settle taxes related to real estate and land.

Crypto assets to pay taxes

The initiative says that São Paulo is considered the country’s economic hub and, therefore, should accept the new method of paying taxes. The text also says that the public authorities need to adapt to the technological innovation that crypto assets products represent.

“Because of the growth of crypto assets products worldwide, it is necessary that the Public Authorities adapt to receive the new advances in technology. Furthermore, São Paulo is the economic hub of the Brazilian state, and therefore, it becomes necessary that its citizen can pay taxes in any form that is available in the market today”.

Although it has not been approved, Bill 01-00344/2022 may turn São Paulo into another capital city that accepts digital currencies as a form of payment.

After being voted on by the city councilors, the legislative proposal should be submitted to the mayor, Ricardo Nunes, for sanction. Meanwhile, Rio de Janeiro is getting ready to test the new payment method.