Latin American countries are quickly taking sides in the crypto debate: Bolivia's central bank has made moves this week to ban crypto and others to regulate, while some are still moving towards adoption.

Mayor Eduardo Paes made an important statement about cryptocurrencies at an event attended by the pro-crypto mayor of Miami, Francis Suarez. According to O Globo newspaper; Paes and Suarez talked about the challenges of transforming metropolises into technology hubs.

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Rio de Janeiro Mayor Paes stated that Rio will launch an incentive called "Cripto Rio" and invest 1% of the treasury in crypto. Paes also announced that he will issue a decree to set up a working group to address the crypto issue.

O Globo newspaper reported that two Rio officials – Pedro Paulo from the Finance Department and Chicão Bulhões from the Economic Development and Innovation team – talked about the mayor’s plans to turn the city into a cryptocurrency hub.

Paulo's following statements were quoted:

   “We are examining the possibility of allowing citizens to pay reduced taxes if they pay with Bitcoin (BTC).”

He added that Urban Building and Land Tax (property tax) deductions could be increased if citizens choose to pay their taxes in BTC, and that the city is now examining the legal framework for such a move.

Francis Suarez Miami

Bulhões, meanwhile, claimed that Rio could be a pioneer city and talked about plans for wider, city-wide adoption.

Meanwhile, the Mayor also talked about transforming the city's Porto Maravalley district into a technology hub by offering tax incentives for companies working in the IT sector.

The media outlet noted that Suarez and Miami's management have already done something similar and convinced several companies to relocate from Silicon Valley to Florida.

While this latest move by Rio isn't as radical as El Salvador's decision to adopt Bitcoin as its official currency, it does show that local governments and sovereign states are not following the advice of international financial advisors and diversifying their portfolios to include cryptoassets.