To further push Bitcoin growth in El Salvador, the government said that foreign investors wouldn’t be taxed from Bitcoin profits. It is also planning to add more incentives for entrepreneurs and investors who would set up their operations in the country.
“If a person has assets in Bitcoin and makes high profits, there will be no tax. This (is done) obviously to encourage foreign investment,” Javier Argueta, legal adviser to President Nayib Bukele, said.
Argueta also said that El Salvador is currently working with international agencies for compliance measures. One of the International Monetary Fund’s biggest concerns about the country’s new law is that criminals might take advantage of this crypto openness to facilitate illegal activities.
Waves of criticism
The country has received huge waves of criticism against its controversial law, which many analysts and financial experts say would be disastrous for the country.
From the opposition party to international financial bodies, all are echoing the same message of worry and fear that El Salvador, with its already embattled economy, might further sink into financial headaches. But even with criticism on all sides, the government hasn’t backed down and continued with its rollout.
The government has even issued its own wallet, called the Chivo wallet, and loaded it with $30 worth of Bitcoin to encourage citizens to use the crypto. On top of that, El Salvador has also bought 400 Bitcoin to prepare for the Bitcoin Law’s rollout.
Yet to be seen
But even with all the criticism, praises, and the eventual rollout of the Bitcoin Law, one thing remains clear: It is yet to be seen how the law will change El Salvador.
But the government’s own internal ministers have already pushed the alarm buttons, warning the President that salary payments could be badly affected because of Bitcoin’s volatility.
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