Brazil's first "Bitcoin capital" Belo Horizonte City Council approves BTC bill

Table of Contents* 1. Brazilian city passes bill aiming to become BTC capital

• 2. The BTC bill in Belo Horizonte aims for three effects
• 3. Challenges and Expectations for Utilizing Bitcoin

Brazilian city approves bill aiming to make BTC the capital

The city council of Belo Horizonte, a major city in southeastern Brazil (the capital of Minas Gerais), passed a bill on May 7, 2025, with a majority in favor, to actively utilize Bitcoin (BTC) within the city and aim to establish its status as the "Bitcoin Capital."

According to a report by the local cryptocurrency media "Livecoins", this bill (PL 124/25) was proposed by city councilor Vile Santos from the Liberal Party, and in the vote, out of 34 city council members, 20 were in favor (about 59%), 8 opposed, and 6 abstained.

This bill is currently at the stage of awaiting the mayor's signature, and it is expected to be officially enacted once signed.

Santos City Councilor who submitted the bill commented on his X (Twitter) account after the vote, "We have taken an important step in officially recognizing Belo Horizonte as the capital of Bitcoin."

Today, we took an important step by approving in the CLJ the project that officially designates Belo Horizonte as the capital of Bitcoin. This initiative not only puts our city in the spotlight on the national and international stage but also opens doors to a series of opportunities. With this…

— Vile (@Vileoficialbr) March 18, 2025

Today, we have taken a significant step by approving a project in the CLJ (Legislative Committee) to officially recognize Belo Horizonte as the "Capital of Bitcoin." This initiative is expected to attract even more attention to our city both domestically and internationally, creating numerous new opportunities.

This decision aims to enhance Belo Horizonte's image as an innovative and attractive city in the fields of technology, business, and finance. Furthermore, it will increase the recognition of the city as an ideal environment for companies and entrepreneurs looking to develop projects related to cryptocurrencies and the digital economy, leading to significant investment attraction.

This initiative is a groundbreaking event that reaffirms our city's unwavering commitment to innovation and progress.

The Three Effects Targeted by the BTC Bill in Belo Horizonte

The bill PL 124/25 approved by the Belo Horizonte City Council aims to position the city as a hub for technological innovation and business in the field of cryptocurrency (digital assets).

Specifically, it aims to actively promote research, education, and everyday use of Bitcoin throughout the city, revitalizing the local economy through the attraction of cryptocurrency-related companies and investment promotion. The bill includes the following three key measures.

• Cryptocurrency Education for Citizens The city supports the holding of seminars, events, and lectures to promote knowledge about Bitcoin and blockchain technology. It aims to improve the knowledge and understanding of general citizens, students, and local entrepreneurs, and to encourage active participation in the digital economy.
• Industrial Promotion and Investment Attraction Aiming to establish itself as a hub for cryptocurrency technological innovation through financial support for startups related to cryptocurrency and research and development projects.
• Introduction of BTC into Public Services As a related measure, the "Bitcoin Livre (自由なビットコイン)" program is also proposed, planning to build a system that allows city taxes and public utility fees to be paid with the cryptocurrency Bitcoin. If realized, citizens will be able to pay city taxes and public service fees with virtual currency, and a system is also being considered to favor local stores that support virtual currency payments through the city's official campaign.

Challenges and Expectations for the Use of Bitcoin

Through these initiatives to promote cryptocurrencies, the Belo Horizonte city authorities expect multifaceted economic effects such as attracting investments from both domestic and foreign sources, promoting financial literacy education for citizens, and an increase in cryptocurrency-related tourism.

As the first full-fledged cryptocurrency city in Brazil, citizens will have access to the latest digital financial services, and the creation of new cryptocurrency-related businesses is anticipated.

On the other hand, issues such as consistency with Brazil's federal laws, the unique price volatility risks associated with cryptocurrencies, and measures against criminal abuses like money laundering have also been pointed out.

During the discussions at the city council, specific opposing opinions were raised, such as "Cryptocurrency Bitcoin is an unbacked speculative asset" and "Power consumption from mining may have adverse effects on the environment."

Despite these concerns, the city council vote received a majority in favor (59%). In the future, if the bill is officially enacted with the mayor's signature, Belo Horizonte is expected to be officially recognized as Brazil's first "Bitcoin City."

In Brazil, there are still challenges to be addressed, such as the establishment of legal regulations for cryptocurrencies, measures to mitigate environmental impact, and preventing fraudulent transactions. However, the advanced initiatives in Belo Horizonte are attracting international attention regarding their potential impact on the spread of cryptocurrencies in South America.

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Source: Local media "Livecoins" reported

Written and translated by: BITTIMES Editorial Department

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