El Salvador President Nayib Bukele weighs in on his country’s future now that there is a formal proposal to make bitcoin legal tender, announcing complementary measures. Bukele noted on Twitter yesterday that there would be no capital gains on bitcoin earnings, and also highlighted the possibility of offering permanent residency to crypto entrepreneurs moving to the LATAM country.
El Salvador will take no capital gains on bitcoin earnings, offers permanent residency to crypto entrepreneurs
The President of the Republic of El Salvador, Nayib Bukele, made some interesting comments on Twitter yesterday, where he answered some of the concerns and questions of those involved in cryptocurrency businesses. The young politician has brought the nation into the media spotlight after appearing at the 2021 Bitcoin conference in Miami, announcement of He will introduce legislation to make bitcoin legal tender in the country.
Bukele said that because bitcoin would be legal tender, there would be no capital tax benefit for earning bitcoin, something that would entice cryptocurrency entrepreneurs and traders to bring their business to the country. In response, Tron founder Justin Sun declared His organization will be the first crypto group to set up an office in El Salvador.
But Bukele went even further, hint El Salvador may offer immediate residency to crypto entrepreneurs wishing to come and invest in the country. This will make it easier for anyone looking to set up or start a startup in the country to set up offices faster and with less paperwork.
While it may sound like talking everything to people, Bukele has the power to make it real. His political party, the Grand Alliance for National Unity, recently Won Strong advantage in parliamentary elections He controls more than 70% of the Legislative Assembly, so any legislation project supported by him is likely to be fast-tracked.
Bukele Plans to Provide a Safe Haven for Crypto Entrepreneurs
Contrary to the stance being adopted by more and more countries regarding cryptocurrencies, Bukele is projecting El Salvador as a cryptocurrency-friendly country with this move. According to many, the young politician certainly has the power and flair to do so.
With countries such as the US and China consistently targeting cryptocurrency startups and businesses with stringent or unclear regulatory frameworks, El Salvador’s proposal is set to attract funding from startups and projects that are now looking to establish a presence in a crypto-friendly state. are interested in.
The move breaks with the tendency of states and nations to plan their own central bank digital currencies, which aim to be a digital complement to their existing fiat currencies. While the move is still only a proposal, it could mark a trend reversal that could cause other countries to consider adopting an already established cryptocurrency to power their economies.
Looks like it’s already working: Carlos Rezala, deputy of the Paraguayan National Congress, recently Having said He will present a crypto-related “important project” to put Paraguay at the forefront of world innovation.
What do you think of President Bukele’s proposals? Tell us in the comments section below.
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