The mayor of Rio de Janeiro, Brazil’s financial hub, announced that 1% of the city’s treasury deposits would be used to purchase cryptocurrencies, making Rio de Janeiro the first Brazilian state to do so.

According to an article by local news media O Globo, city mayor Eduardo Paes announced his initiatives at Rio Innovation Week while speaking with Miami’s bitcoin-loving mayor Francis Suarez.

During the chat, Eduard Paes said: “We are going to launch Crypto Rio and apply 1% of the Treasury in cryptocurrency.”

Despite reports from various news sites, Paes did not expressly specify any crypto asset that the city will purchase the cornerstone cryptocurrency bitcoin. The 52-year-old Brazilian mayor complimented Suarez’s efforts to turn Miami into a bitcoin hub at the occasion.

According to CryptoGlobe, Miami’s mayor has stated that he is willing to putting 1% of the city’s treasury reserves into bitcoin. Suarez has been looking at bitcoin for a few weeks now.

As the current statistics suggest, the investment would be substantially lower than the expenditures made in bitcoin by various companies last year. MicroStrategy, for example, has purchased almost $3.7 billion worth of BTC, while Miami’s allotment is expected to be approximately $20 million.

Rio de Janeiro is also planning to offer a 10% tax rebate to anyone who pays their taxes using the crown jewel cryptocurrency bitcoin to attract people and businesses from the crypto exchange field to the region.

Interestingly, Brazilian congressperson Luiz Goularte Alves suggested a plan in November of last year that would allow governmental and private sector personnel to be paid in BTC. Employees would be able to pick a percentage of their salary to be paid in cryptocurrency under the measure.

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