Here’s Why El Salvador Could Be the Next Big Crypto Safe Haven
While cryptocurrencies have come a long way, the same cannot be said about the industry’s regulatory environment. Even while the disruptive technology has prominently featured on regulators’ radars throughout the globe, it has experienced ongoing antagonism in a number of significant jurisdictions. As a result, crypto firms are frequently forced to relocate from their nation of origin.
On the other side, some countries are capitalizing on this trend by developing crypto-friendly legislation that makes it attractive for crypto enterprises while portraying support for related start-ups. El Salvador appears to be the latest in line, having pledged to accept Bitcoin as legal cash. Soon after the announcement, Nayib Bukele, the nation’s president, demonstrated why his country could be the next crypto safe haven.
Reasons to Migrate to El Salvador
In response to Tron CEO Justin Sun’s tweet that El Salvador may soon see an influx of investors and entrepreneurs, President Bukele highlighted several of the country’s strongest selling factors.
The most notable among these was the absence of capital gains tax on Bitcoin, which is set to become a legal tender in the country soon. At a time when tax authorities throughout the world are levying 20-30% taxes on bitcoin gains, this is a dream come true for cryptocurrency aficionados and start-ups.
To top it off, the nation is now providing bitcoin entrepreneurs’ immediate permanent residency. Additionally, the president noted that El Salvador is one of the few countries in the world that does not have a property tax.
All of this comes with “great weather, world-class surfing beaches, beachfront properties for sale,” Bukele said.
El Salvador, as previously reported by BTCManager, is no stranger to cryptocurrencies. El Zonte, a little rural town on El Salvador’s coast with less than 3,000 residents and no banks, money services firms, or ATMs, was able to develop a thriving Bitcoin economy for itself thanks to a huge six-figure investment by an anonymous bitcoin whale.
The latest development follows Bukele’s statement on June 6 that he will introduce a bill to Congress next week to make Bitcoin a legal tender in the Central American country.
“In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy,” Bukele said in a video shown at the Bitcoin 2021 conference in Miami.