Brazilian official: Bitcoin is the future, using cryptocurrencies can help locals hedge against inflation

Chicão Bulhões, Rio de Janeiro’s secretary of economic development, explained why the city invested 1% of its national debt reserves in cryptocurrencies. Bulhões said that by investing 1% of its treasury reserves in cryptocurrencies, Rio de Janeiro is trying to become a global cryptocurrency center and reduce local distrust of cryptocurrencies. We know Bitcoin is volatile and some people criticize us for it, but it is the future and Rio wants to be a reference for a crypto friendly city in the world, like Miami or Zug in Switzerland. Bulhões added that the use of cryptocurrencies can help locals hedge against inflation, and despite its volatility, the deflationary nature of some digital assets can be beneficial in rising prices, playing an important role in reducing inequality in the country. Inflation in Brazil has been difficult for the past four years. And we know that some cryptocurrencies are deflationary and can be used to keep people from losing their purchasing power. This gets people interested in the possibility of having an alternative to the cen