Topic: El Salvador has become the first country to make #Bitcoin legal tender! 🇸🇻 - page 70. (Read 38876 times)

meanwhile, the president of El salvador is raising over $1 billion to finance his Bitcoin city project.
what a smart move for a developing country.

Of course, this will take some time, and large companies will want to test for themselves how profitable El Salvador's offer is for their business. In addition, the bill affects a fairly large industrys, from software to the development of AI. Therefore, the prospect for the development of the economy of El Salvador is very large.

You are right, in the end it can become an avalanche effect, after a few pioneers who decide to be the first, if everything is really so positive, then a lot of companies will want to benefit from loyalty in taxation. But let's not get ahead of ourselves, there is still a lot of work to be done to realize this great idea.

I was considering how much tax El Salvador will lose from this policy when implemented. The country needed all the income it can get because every sector of its economy is going through a positive resolution. But @Jay just opened up an important advantage of this policy. Bukele's policies on Bitcoin and other ICT facilities have attracted companies like VISA investing about $270 million in three countries which includes El Salvador. MasterCard has the plan to support more than one million, OfficePartners360, Pronto BPO, and Worldwide Call Centers all have large operations in El Salvador.

All these investments will create massive job opportunities and other local businesses will also partner with these international companies which will lead to the transfer of technology and skills.




https://www.bizlatinhub.com/el-salvador-tech-industry-no-taxes-on-software-hardware-and-ai-development/

Removing all income taxes to the technology company tax is really a very brave step made by the Nayib President, there is a high probability that this will make the investment in technology company flood to El Salvador.  reportedly congress is still evaluating this submission and it will soon be ratified if it has passed.

Why do you use this expression:  "El Salvador's president has appointed two US crypto investors to lead it."

Seems pretty lame to be characterizing Max Keiser and Stacy Herbert as two "crypto investors" when we are talking about bitcoin - because that dumb ass "crypto" descriptor is vague and carries baggage... so why say it like that?


Surely it does not take too much creative thinking to be able to realize that taxes are not being completely eliminated, but only reduced or eliminated in various sectors that are being named that relate to bitcoin innovation (and perhaps some related technological innovation in order to have some broader appeals), and so if there is some success (or even a lot of success) in terms of attracting certain businesses (bitcoin related and/or technological related) to come to the country, then there are likely known (or at least hypothesized) snowballing effects that take place in which new business ends up attracting ancillary businesses too.. and so even if their might be some costs that are involved when tax breaks are given to some businesses, whatever those extra costs might be can be made up by the increased tax revenues that would end up coming into the country through ancillary businesses... that is so long as there is some level of success in terms of attracting the businesses and that the businesses are seeing that the practices match the words.. because surely as some members have already mentioned (in this thread) that it can take a bit of time for businesses to develop some confidence that the rule of law is going to hold or that they are not going to end up getting rug pulled, so even if El Salvador is making promises, there could be situations in which the promises do not end up materializing into a sufficient amount of concrete an meaningful follow through.. which then ends up interferring with any kind of development momentum because some BIG name businesses end up either not entering the space or they end up leaving the space.

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El Salvador has introduced a 0% tax on cryptocurrency transactions under the current bold President Nayib Bukele Nayib Bukele will have his name written in gold letters for this bold move as El Salvador exists as the first tax-free city in history. The demand of entrepreneurs for tax exemption has increased because other countries in the world are not tax exempt. That's why the demand for crypto entrepreneurs is currently the highest in the city of El Salvador.

The idea is good, although it may seem that El Salvador will not benefit from this, since the treasury will not receive taxes from this business, but Bukele sees this as a different benefit, it will still bring money into the country and improve the state of the economy as a whole. If we are talking about the fact that many scammers use cryptocurrency for their crimes, then I can say the same about fiat money.

Bukele is a man of ideas and I can imagine how difficult it is for him to promote this idea, but in the end it is the dreamers who are able to change the future. I understand that a person who will not be so loyal to bitcoin can take the place of Bukele, but by then he needs to build a system so that everyone sees the benefits from it, both for tourism and for the economy.

In fact, I was very happy when El Salvador first adopted Bitcoin as legal tender. So I always hope that Nayib Bukele always innovates to make their program a success. This is because El Salvador will inspire many countries around the world that Bitcoin is not dangerous or even profitable.

Actually, I am also happy to see this news, it means that they are able to survive without the help of the IMF and pay off debt. Indeed, there is not much news I get about El Salvador right now. But today I got news if they created a National Bitcoin Office. El Salvador's president has appointed two US crypto investors to lead it. 

Source: https://english.elpais.com/international/2023-04-02/crypto-evangelists-enter-the-bukele-government-the-dark-business-of-bitcoin-in-el-salvador.html

News reports on whether or not El Salvador will implement a free tax on technological innovation for cryptocurrencies. This will depend on a careful balance and assessment of potential risks and benefits. There are pros and cons to the idea of ​​a free tax to encourage greater adoption of innovative crypto technologies. but there are many loopholes to tax-free innovation of crypto technology. As in this concept, cryptocurrency is most commonly used by criminals for various illegal purposes and misuse of crypto and various illegal activities for money laundering and other illegal activities. But Nayib Bukele's idea of ​​a free tax on technology innovation for crypto has many advantages. Nayib Bukele for inventing this idea thinks it will encourage space and all kinds of business. and will increase EL Salvador's economic and global standards and lead to prosperity...
more details

Stanford University study found that many citizens living in El Salvador have relatives living in different countries. They send huge amount of remittance every year. In 2021, citizens of El Salvador from abroad sent 6 billion dollars in remittances, which is about 22 percent of their total GDP. But the most important point is that the remittance fee for this money transfer is almost 50 percent in some cases. This is certainly not a simple issue and considering the importance of the matter, the Government of El Salvador has taken a logical decision to adopt bitcoin. Gradually people will now be encouraged to set up their businesses in El Salvador.

We see that crypto projects which want to stay in a legal field usually choose very few countries where there is at least some crypto legislation. So El Salvador can attract startups and exchanges in this field being known bitcoin friendly country. Of course carving out a new niche in the economy is risky but is some of startups succeed it can give additional impetus for economy development of not too huge country. Anyway for me bitcoin and innovations sound connotative and I think that not only for me, so I hope some other IT companies will choose El Salvador as well.

A boon for El Salvador is the move by President Nayib Bukele to free up taxes. Because the governments of other countries have not taken steps to tax cryptocurrencies so far. And here the owner of CZ Binance must help and mentioned 60 employees. I respect this bold step of Nayib-Bukele, because entrepreneurs will definitely have the opportunity to work more freely after receiving this news. El Salvador would go down in history as the world's first tax-free country.

Tax holidays are major ways any government encourage it, citizens, into tapping into the sector where there are tax holidays, in my country, there are no customs duties on Agricultural equipment and this is to help encourage citizens to go into Agriculture since it is a major source of revenue generation after crude oil.

-El Salvador has taken a similar move to encourage its citizen to adopt Bitcoin and other tech activities to help boost their economy.

Behind the official letter from the government of El Salvador signed by the minister of economy, we can interpret that El Salvador is very aggressive in attracting investors to this Central American country. Taxes can be one of the inhibiting factors for investors in investing.

Or is there another purpose behind this tax write-off, we don't know. or the abolition of the intended tax can help the adoption of Bitcoin in particular, we also want to discuss further here by listening to each of the views given.

Anyone, organization, or nation that is undertaking the economic strategies of the current government of El Salvador led by Bukele must be a joker. We have gradually seen viable and systematic policies and policy implementation that is turning the nation into an economic hub. To attract more investors, the free tax policy has been enacted. It takes a business a few years to stabilize and start making profits. Without paying taxes these businesses will have the time to grow without the tax burden.
This policy will also lead to an increase in employment opportunities thereby reducing the rate of unemployment. And when people are gainfully employed, the tendency to go into crime becomes low.

That's it! Many consider bitcoin adoption in El Salvador just as an investment option and think that if it will go up then government can sell it and earn. But bitcoin is more than just an investment asset, it is a financial system based on a new philosophy, so I expect that it will help to develop the whole economy of El Salvador working as a useful and attractive tool. It is not just to buy and sell, it can give many benefits of its usage in a monetary and financial branches. Being built into the economy, I hope, bitcoin will help it to grow.

To be precise, the direction of my thoughts are directed towards positive things, not politics because some will give birth to the thought that all of this is the first step in gaining a percentage of votes and so on.

The elimination of this tax is relatively new because previously Nayyib Bukele with his advanced thinking had made various breakthroughs in matters relating to Bitcoin to maintain the comfort of investors investing in El Salvador including gang crackdown efforts with neighbors such as South Mexico and Guatemala and the US to prevent them from escaping.

Maybe we will soon dream of moving to El Salvador.

this is another bold step taken by the state of El salvador in particular by the President Nayib Bukele. and I think the developers and entrepreneurs there will be more and more free to innovate there. and of course this can trigger more positive things for the development of the country itself in the future. because even Nayib bukela also revealed that the tax breaks will also apply to computing and communication hardware manufacturers in the country. ¹.

And this step has also received a lot of support, such as from CZ binance and also from people who do have an interest in the technology and crypto industries. because the light tax will certainly attract more foreign investors in technology to the country. and of course small entrepreneurs in the technology industry in that country will also be more enthusiastic about building their businesses with this convenience. I think with this El Salvador is one step ahead of achieving its dream of building the world's first bitcoin city.

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Reference:
1. https://www.cryptopolitan.com/el-salvadors-president-tax-free-tech-bill/

what we can be certain of is! bukele must work harder and more seriously in the development of this bitcoin adoption. because in any case there will always be parties who support and those who refuse, because surely, behind the success that can be achieved from adopting bitcoin, there will definitely be some parties who feel disadvantaged from this adoption. such as Central banks, or local communities. so I'm sure, even now maybe there will be some parties who feel disadvantaged because of the adoption of this bitcoin and will continue to frustrate or at least disrupt it.

so for sure, as much as possible, as much as possible, before the new president replaces president bukele. president bukele must be able to continue to bring good news about bitcoin, good image about bitcoin, and good results from this bitcoin adoption. because if what comes out is positive, I'm sure this adoption will be viewed positively by all El Salvadorans. even El Salvadorans who don't like bitcoin too, if they see something that can advance the country of their birth, they will definitely at least think again.

and bitcoin adoption in el Salvador is still in development stage. but even though it is still in the development stage, it has seen positive results.

Source : https://pintu.co.id/news/27011-el-salvador-bitcoin

and this is one of the positive things that el Salvador got from the fruit of bitcoin adoption.

In this case I quite agree because saying they failed is also something that can be considered wrong.
Speaking with tourist conditions there, when we look at statistics in the tourism industry in 2022 they actually increased quite rapidly even up to 30 percent since adopting bitcoin. On the other hand, their crime rate statistics (Murder) also from 2020 have decreased dramatically and of course something new happened earlier this year they managed to pay off bonds worth US $ 800 million plus interest from bitcoin. This is the fact that with the adoption of bitcoin they are not completely at a loss and in fact this is a real improvement.