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Come to El Salvador to Escape Crypto Taxation, Nayib Bukele Urges Bitcoin Holders

Bitcoin continues to be talked about, even as its value plummets. The price of graphics cards is even beginning to stabilize. While the price of crypto currencies collapses by several hundred billion.

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The stock market is in turmoil as the centerpiece of the blockchain shows a negative growth pattern, with relatively low rates of return. Even if it is a classic and normal pattern, portfolios are shrinking and transactions are becoming rarer. Not sure that a new historic high is looming on the horizon of 2022 as some thought. But Nayib Bukele, President of El Salvador does not demerit and bets everything on Bitcoin, to the point of promising citizenship to his investors!

  • In September 2021 El Salvador became the first country to make Bitcoin its official currency.
  • Nayib Bukele later presented his “Bitcoin City” project
  • He now plans to offer citizenship to foreign investors
  • Bitcoin is down more than 14% in the last seven days

Bitcoin And Salvador, A Great Love Story?

To address the link between Bitcoin and El Salvador, it is important to remember certain facts. First of all, what is El Salvador?

It is a Central American country, the smallest country in this region, with some 20,000 square km, with an estimated population of around 6 million. This makes it the densest country on the American continent. To date, it has been managed by Nayib Bukele, its young 38-year-old president, since 2019 and elected with 54% of the vote.

It was in a fairly dull and wobbly economic context that the president spoke out in favor of Bitcoin as legal tender in his country. The stated objective and to allow the country to free itself from the permanent pressure of the United States since the American dollar was until then the only legal currency in El Salvador.

In this way, Nayib Bukele intends to make his country a new economic power. Going so far as to promise the construction of a Bitcoin city. This may make you smile, but it is true that with its significant volcanism, El Salvador is a perfect area to allow Bitcoin mining cleanly and massively.

It is therefore in September 2021 that Bitcoin officially becomes one of the country’s two legal currencies. Not without a few hiccups.

 

An Economy Centered Around Bitcoin

 

But El Salvador didn’t just make Bitcoin legal in the country. The country invested heavily and quickly became one of the biggest Bitcoin investors in the market.

Indeed, the country regularly takes advantage of declines to add Bitcoin to its portfolio. According to Bloomberg, it would be no less than 1800 Bitcoins held by El Salvador. For an estimated value of around 68,000,000 dollars. To go further, Nayib Bukele, therefore, intends to create the first Bitcoin City in the world, completely centered around Bitcoin.

No taxes will therefore be present in the city and everything will be devoted to the most famous cryptocurrency. Residential areas, commercial areas, museums, entertainment, services, airports, railways, etc. The volcano will provide all the energy necessary for the functioning of the city and will also be used for Bitcoin mining.

And despite the concern of locals, the project to link Salvador and Bitcoin continues. Perhaps a cryptocurrency awareness budget would not be out of place, however, to unite all the people of El Salvador.

 

Nationality To Bring Bitcoin Investors

 

And this time again, the pro-Bitcoin president is talking about him. He recently announced his intention to offer citizenship to foreign investors. He hopes to encourage investors to set up in his country. This is to strengthen his country economically of course.

“I am sending 52 legal reforms to Congress, to cut red tape, reduce bureaucracy, create tax incentives, citizenship in exchange for investments, new securities laws, stability contracts, etc. The plan is simple: as the world descends into tyranny, we will create a haven of freedom. »

 

Tweet Nayib Bukele Salvador Bitcoin
Tweet by Nayib Bukele on the 52 reforms he submitted. (Source: Twitter)

There is therefore no real precision on the type of investors targeted. It may speak to a wider audience than just Bitcoin investors. But these will certainly be received with honors and a nice red carpet.

However, this news comes just after the US Senate Foreign Relations Committee urged the State Department to verify Bitcoin’s legal status in El Salvador. There has been growing concern around Bitcoin as most practices associated with it comes down to illegal practices. El Salvador’s decision to grant citizenship to individuals seeking to escape taxation for Bitcoin has now inflamed its relationship with the United States.

But Nayib Bukele does not intend to be intimidated so easily. And if some may find that he is playing a dangerous game, we must recognize certain courage in him.

“You have 0 jurisdictions over a sovereign and independent nation. We are not your colony, your back yard, or your front yard. Stay out of our internal affairs. Don’t try to control something you can’t control. »

Investing In BTC In 2022?

 

It remains obvious to some that Bitcoin is an investment of choice. It is a powerful and immutable asset that has already allowed many investors to become rich in a short time.

If it is a revolution, even an evolution of the current monetary system, it is a sign of hope for many. For Nayib Bukele and the people of El Salvador, he may represent the keystone to enable the country to emerge from the dark hours of its history. And now that an entire country has linked itself to its history, it is difficult to envisage Bitcoin collapsing as some thought a few years ago.

So while 2022 may not be off to a bright start for today’s hottest asset, it’s a perfect entry point for the future. Bitcoin has never been as secure as it is today. It remains to be seen to what extent it will make us dream.

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