Days after announcing plans to make Bitcoin as legal tender, the Central American country El Salvador’s millennial President Nayib Bukele has now attached incentives for those dealing in Bitcoin in the country, contrary to restrictions in many other countries over the adoption of the crypto king. As El Salvador seems set to become the first sovereign nation in the world to have Bitcoin as legal currency alongside the US dollar, Bukele added to the buzz on Monday by tweeting that there won’t any capital gains tax on Bitcoin. He further offered immediate permanent residence for crypto entrepreneurs.
1. Great weather, world class surfing beaches, beach front properties for sale.
2. One of the few countries in the world with no property tax.
3. No capital gains tax for #Bitcoin, since it will be a legal currency.
4. Immediate permanent residence for crypto entrepreneurs. https://t.co/j3eugJQCMd
— Nayib Bukele ???????? (@nayibbukele) June 6, 2021
“El Salvador’s decision to embrace crypto is big news for the entire crypto ecosystem. Financial inclusion is the ethos behind crypto, and introducing it in the system will help bank the unbanked in developing countries like El Salvador. While this news didn’t have a gigantic impact on Bitcoin prices, it will have a large impact in the long run. El Salvador has a GDP of $27 billion, and as more of its people adopt crypto, this will push more countries towards crypto acceptance.” Nischal Shetty, CEO WazirX and Member of Blockchain and Crypto Assets Council (BACC) set under the aegis of the Internet and Mobile Association of India (IAMAI) told Financial Express Online.
Bukele had also tweeted on Monday that the country will build a satellite infrastructure for its citizens in rural areas to connect to the internet and the Bitcoin network in places where connectivity is poor. He had also informed on Sunday on Twitter that the proposed legislation for making Bitcoin as legal tender is “almost ready” to be sent to the country’s Congress. “We hope that this decision (to make Bitcoin as legal tender) will be just the beginning in providing a space where some of the leading innovators can reimagine the future of finance, potentially helping billions around the world,” Bukele had tweeted.
There was a temporary spike in interest as well among people checking real estate in El Salvador after the President’s announcement on Sunday.
“Countries will have to inevitably incorporate cryptocurrencies and give it some form of legal status, maybe as an asset class or property. For India, a country that wants to ace the digital era and build a $5 trillion economy, cryptocurrencies will play a huge part in getting there by offering avenues for revenue generation, employment opportunities, etc. It will be in the best interest of India to quickly move towards implementing crypto regulations,” Sharan Nair, Chief Business Officer, CoinSwitch and Member, IAMAI-BACC told Financial Express Online.
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