Monday, March 4

Municipality of Rio de Janeiro cuts taxes on “green” cryptocurrencies | Bitcoin Portal

The City Council of Maricá, a city in the metropolitan region of Rio de Janeiro, approved on Thursday (30) the creation of a new local taxation regime that will reduce taxes levied on environmental protection initiatives, such as the so-called “currencies green” (sustainable cryptocurrencies).

According to official statement from the city hall, Complementary Law No. 357 was presented by Mayor Fabiano Horta (PT) and approved by the Chamber.

In practice, the new regime reduces to 2% the rate of taxes paid by companies that provide services in the area, such as “digital operating platforms, including environmental assets, fintechs, startups providing these services, in addition to fund administration and management activities that fall into this area of ​​activity”.

Taxation will only take place at the stage of liquidation of green bonds, when the rate for taxable material is applied.

“The objective of the taxation model is to encourage organizations that own these products to settle in the city, injecting new technologies to make Maricá a reference in encouraging green projects, those whose purpose is to offer positive impacts to the environment”, says the statement .

This new tax regime, it is worth remembering, is limited to the territory of Maricá.

Mumbuca: Maricá’s local cryptocurrency

Although not directly mentioned in the proposal, the measure should encourage the use of Mumbuca, a kind of local cryptocurrency distributed to low-income residents of the city.

Mumbuca circulates in the region since 2013 and is accepted in most local businesses, such as markets and pharmacies.

Mumbuca (Photo: Publicity/Marica City Hall)

The use of local currency in the city has already gained international prominence, as in the publication of the Americas Quarterly which tells how the Brazilian city is silently experiencing in practice the universal basic income.

Although the experience of the municipality of Rio de Janeiro does not use a cryptocurrency negotiable on the market, there are other projects that have emerged in the sector with similar proposals.

Proof of Humanity, for example, is a project developed in Argentina and praised by Vitalik Buterin, the creator of Ethereum, which proposes the distribution of universal basic income through the UBI cryptocurrency.