Last Tuesday, El Salvador officially became the first country in the world to accept Bitcoin as its official currency, with the state demanding that all local sellers also accept Bitcoin payments. What is interesting, however, is that Salvador is reportedly trying to attract foreign investment by adopting significant tax breaks on BTC trading. According to the presidential legal adviser, the government of El Salvador will allegedly exempt investors from paying capital gains tax and income tax on BTC.
In collaboration with global companies such as Bitso Cryptobourse and Silvergate Bank, Salvador has launched an official BTC wallet known as Chivo, with a relatively large number of BTC vending machines installed throughout the country and the country also setting up offices to advise citizens on any issues. These are the reasons when the company understood that Salvador was really serious about integrating BTC into everyday life. However, as we have written, very few people have expected tax exemption, and it is a really interesting and bold idea. Javier Argueta, President Nayib Bukele’s legal adviser, also commented on the situation, adding that:
,,If a person has assets in Bitcoin and makes high profits, there will be no tax. This is done obviously to encourage foreign investment.”