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Permanent residency for crypto entrepreneurs in El Salvador

El Salvador’s President, Nayib Bukele, said in a prepared speech broadcast at a Bitcoin conference in Miami on Saturday that he will bring a draught bill to the legal assembly next week that would make bitcoin legal tender in the Central American country.

“Next week I will send to Congress a bill that will make Bitcoin a legal tender in El Salvador,” Bukele said. “In the short term this will generate jobs and help provide financial inclusion to thousands outside the formal economy and in the medium and long term we hope that this small decision can help us push humanity at least a tiny bit into the right direction.”

El Salvador is mostly a cash economy, with around 70% of the population lacking bank accounts or credit cards. Remittances, or money sent back to El Salvador by migrants, contribute to more than 20% of the country’s GDP. For those foreign transfers, which might take days to arrive and occasionally involve a physical pick-up, incumbent providers can charge 10% or more in fees.

Bitcoin isn’t backed by anything, not even a government. Its worth stems in part from the fact that it is digitally limited; only 21 million bitcoins will ever exist. El Salvador has assembled a team of bitcoin leaders to assist in the creation of a new financial ecosystem, with bitcoin serving as the foundation.

If his proposal is approved by Congress, the Central American country will be the first in the world to formally adopt digital currency.

It would be used alongside El Salvador’s official currency, the US dollar.

Because Bukele’s New Ideas party controls the country’s Legislative Assembly, the bill is almost certain to pass.

Effects of this bill on El Salvador’s economy

El Salvador’s government will be among the first to use digital currency. When other countries begin to adopt such currencies, El Salvador will already be reaping the benefits.

Being the smallest country in Central America, El Salvador suffers from persistently low levels of growth, and poverty reduction has been moderate. El Salvador would attract more foreign direct investment with the use of bitcoin, resulting in more job opportunities and growth.

Nayib Bukele's tweet on bitcoins effect on El Salvador's GDP.

Having 10 million potential Bitcoin users would increase the value of Bitcoin, benefiting its users.

El Salvador has the world’s first bitcoin beach, which aims to establish a functional economic ecosystem based on bitcoin. Making bitcoin legal tender in El Salvador may lead to more projects like the Bitcoin Beach.

Advantages of being a crypto entrepreneur in El Salvador according to Nayib Bukele

-Great weather, world class surfing beaches, beach front properties for sale.

-One of the few countries in the world with no property tax.

-No capital gains tax for Bitcoin, since it will be a legal currency.

-Immediate permanent residence for crypto entrepreneurs.

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