[El Salvador doubles down on Bitcoin]
El Salvador, led by President Nayib Bukele, has shown a strong commitment to Bitcoin, planning to purchase one Bitcoin per day until fiat currency becomes unaffordable. This strategy allowed the country to accumulate 5,690 Bitcoins worth approximately $4 million.
Additionally, El Salvador eliminated income taxes on international investments and remittances, reducing the tax rate from 30% to 0%, in an effort to attract foreign investment and promote economic development. The country has transferred more than 5,000 Bitcoins to cold wallets, and some assets have been transferred to offline devices in domestic physical vaults, demonstrating long-term confidence in cryptocurrencies.
El Salvador became the first country to make Bitcoin legal tender in September 2021, and its value has fluctuated wildly since then. The country has significantly increased its Bitcoin holdings through daily purchases of Bitcoin, sales of passports, corporate currency conversion, mining and government services.
President Bukele’s vision is not just to accumulate Bitcoin, he also hopes to transform El Salvador into a wealthy country through related strategic investments. Despite criticism from the International Monetary Fund and other institutions, El Salvador has persisted in its Bitcoin strategy, becoming a model of a friendly environment for cryptocurrency investment and potentially leading a new global financial landscape.
