After announcing, on June 5, his intention to adopt bitcoin as legal currency, the president of El Salvador, Nayib Bukele, talks about his plans to encourage investments by cryptocurrency companies in the country.
On Sunday, June 6, the head of state of the Central American nation indicated through his Twitter account that his proposal will be accompanied by some fiscal and economic incentives for the new capital in bitcoin that could enter the country, once their plans are implemented.
Bukele highlighted as one of the main advantages for investors the «excellent climate , world-class surf beaches, beachfront properties for sale “, adding that El Salvador is” one of the few countries in the world without property taxes. “
On the other hand , reiterated in his tweet that in his country “there is no capital gains tax on bitcoin, as it will be legal tender.” It also offers “immediate permanent residence for crypto entrepreneurs.”
In response to Bukele’s message, many of the followers, including those who identified themselves as cryptocurrency investors, responded to the tweet noting that with this offer would be advantageous to move to El Salvador.
Among those who commented on the Bukele account was Zhao Changpeng, CEO of Binance , who posted a gif of Mickey Mouse making their suitcases.
Something similar did the founder of Tron, Justin Sun , who expressed the following: “investors and crypto entrepreneurs will begin to move to El Salvador! ”. For this Monday, June 7, Sun makes another announcement on Twitter related to the issue, ensuring that Tron will become the first crypto organization to establish an office in El Salvador.
Investments in El Salvador rebounded in the first quarter of 2021
Although President Bukele has not explained in which economic areas these investments in bitcoin can be made, some local media of that nation state that during the first quarter of 2021 there have been several announcements about the injection of capital by the private sector . This, after a 2020 marked by the pandemic and the freezing of several execution plans.
Confirmed projects include construction, energy, telecommunications, real estate sectors and retail that are committed to a more agile recovery of the business climate, which is diminished by the biggest collapse of the economy in 40 years (-7.9%).
In total, the investment plans -of those that have been confirmed- have a combined value that exceeds USD 100 million . However, some are initiatives that were planned for 2020, but others follow a strategic approach to reactivation.
Bukele’s surprising statement
The details of the scope of the measure that would make the Central American country the first in the world to adopt bitcoin as legal tender are not yet known . However, Bukele’s statement was known in a message (on video) broadcast at Bitcoin 2021, a global conference held on June 4-5 in Miami, United States, which was reviewed by CriptoNoticias.
In his brief speech, Bukele revealed that he is working with the Strike company (a startup developer a digital wallet) to build the infrastructure for the use of cryptocurrency.
During his speech Bukele highlighted that bitcoin could be used with a digital wallet (like Strike) to receive remittances, which “will increase shipments by the equivalent of billions of dollars each year”, avoiding the amounts that are lost in payments from intermediaries. “Bitcoin will have 10 million potential new users and the fastest growing way to transfer $ 6 billion a year in remittances,” he said.
The president also pointed to the three keys for his country to adopt bitcoin as legal tender , as this media outlined on June 6, 2021. He stressed that the new law would seek to replicate the Bitcoin Beach project in Playa El Zonte, where the population uses cryptocurrency as a means of payment.