Immediate Permanent Residence For Crypto Entrepreneurs In El Salvador

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(Edited)

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In a tweet published half an hour ago, the President of El Salvador, Nayib Bukele, announced immediate permanent residence for crypto entrepreneurs.

On top of that, there will be no capital gains tax either, as it will be a legal currency. Another thing that I didn't know about El Salvador is that it doesn't has a property tax.

As expected, this starts to be a very interesting story.

I am not extremely enthusiastic about this, for the following reasons:

  • South America, and El Salvador especially, is not famous for political stability. Even if the bill passes, opposing forces may enforce a coup and erase it

  • the speed at which it unfolds tells me there will be an equal re-action from the establishment. And since a big part of the external debt of El Salvador is in USD, and it should be paid to US, we also know that US is not famous for proportionate reactions in countries where they have economic interests. Their reaction was disproportionate to the level of "war", most of the time. Last decades it was oil, now it looks like it might be Bitcoin.

I am moderately enthusiastic, for the following reason:

  • sometimes, good things happen.

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18 comments
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Let us watch as it all pans out. I also expect some for of backlash, or at least a reprimand from the powers that be but we'll see. If this does scale through though, then I expect a few more countries to follow suit by next year

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I don't really get how this can work globally if other nations treat bitcoin as an asset rather than a currency. That seems to be an important distinction from what I've learned recently.

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It won't work globally just yet. But it will work in El Salvador, which is still a sovereign country, and can decide on whatever monetary policy they want. If they want to use rocks as legal tender, they can do that.

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Once one country recognises BTC as legal tender it become foreign currency for all other countries. Read my post: https://peakd.com/bitcoin/@apshamilton/el-salvador-to-make-btc-legal-tender-huge-international-implications-for-btc-taxation-and-accounting

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Thank you for your engagement on this post, you have recieved ENGAGE tokens.

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It all boils down to how bad the people want it.

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That's a great announcement for all crypto entrepreneurs who are now in a register a property at El Salvador, it announced in twitter by the president. So, new and more possible way for the BTC for its stablishment.

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While I understand your pessimism, President Bukele has an extremely strong political position - his party just won huge majorities in elections for Congress.

He has also resisted quite a lot of US pressure recently and is clearly bringing in other interests (Russia, China and now Crypto) to balance US interests and pressure.

This offer will be extremely attractive to Nomad Capitalists with crypto interests and will cause a flood of crypto related investment into El Salvador.

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