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Yes, I have been there for New Years and it is quite mellow actually. Everyone is drinking of course (and smoking) but walking to meet at Copacabana beach to watch the fireworks display that is setup off shore that starts at midnight and goes on for about 15 minutes.
People wear all white so I recommend that to not stand out as a tourist. Don't carry around a lot of cash and just blend in as you should since you are there to ring in the new year along with 2 million others.
You will never forget it - have fun!
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