A bill submitted by the city hall and approved by the city council aims to raise funds through non-fungible assets, so-called NFTs (non-fungible tokens in Portuguese). In effect, this is a way for the city of Petropolis to enter the crypto market and raise funds through digital art involving the city.
Senator Carlos Portinho, the author of the proposal, presented the idea to City Council President Hingo Hammes and Vice President Fred Procópio in Brasilia over the past few weeks. On Thursday, the senator used a visit by the Federal Senate’s Provisional External Committee to discuss the project with the city and forward the law’s release. Inspired by Ukraine, which received 34.1 million reais through NFTs on the country’s flag. The money was used to help refugees fleeing the war with Russia.
In the case of Petropolis, plans are underway to auction works by famous artists. The funds raised are expected to be used in the first half of this year.
“As a rapporteur on the legal framework for startups, I seek innovative solutions to help the city, which I believe is a good path for the reconstruction of Petropolis. For example, I think it can help restore Rua Teresa and guarantee decent housing for victims,” explained Senator Carlos Portinho, Rapporteur of the Interim External Committee of Petropolis, who presented the proposal to the municipal government. “It’s a very difficult moment and to help us we need to think outside the box,” he added.
The idea is to auction off these assets, and the money collected is used to deal with the rain and buy homes for those who have lost their homes.
To make the project viable, the city government will contract: a digital platform for the commercialization of cryptoassets, for the creation of these non-fungible assets; a technology company or consortium or a securities brokerage that manages and custodians any investment fund, whose share capital will be Pay by creating non-fungible assets.
In addition, the City will work with artists, corporate or professional consortia, technical professionals, marketing, art galleries and auctioneers to enable the donation, creation, commercialization, sale and licensing of non-alternative asset use rights. As well as organizing auctions of goods.
The project was approved by lawmakers. Now the municipality will regulate the law in the second moment.
Learn what NFTs are
Non-fungible token technology – a blockchain-based form of digital authenticity verification, the same technology behind cryptocurrencies – was invented in 2014 by British man Tim Berners-Lee, who is also the creator of the WWW (World Wide Web) protocol .
According to InfoMoney, “In the cryptocurrency world, a token is a digital representation of an asset (such as currency, property, or artwork) registered on the blockchain, which was born with BTC in late 2008. Example: If a person Owning a token for a property means he is entitled to that property – or a part of it.
“Substitutable goods, according to the Brazilian Civil Code, are those that are ‘substitutable by other goods of the same kind, quality, and quantity. Substitute” products.
“Therefore, an NFT is a representation of a unique item, which can be digital—like graphic art made on a computer—or physical, like a painting. In addition to artwork, music, game items, in-motion ‘s unique moments and memes can all be rolled into one.
“In practice, being a non-fungible token means becoming a proprietary digital certificate that anyone can see and confirm its authenticity, but no one can change.”
*Information from Agência Brasil and InfoMoney