Tuesday, 14 September 2021 13:05

CoinDesk says El Salvador will encourage foreign investment with the use of Bitcoin

Written by Evelyn Alas

According to CoinDesk newspaper, El Salvador is trying to encourage foreign investment having adopted bitcoin as legal tender.

The media expressed that, "El Salvador will exempt foreign investors from taxes on profits from investments in bitcoins” a government advisor said.

The Central American country, which last week became the first state to recognize bitcoin as legal tender, is trying to encourage foreign investment, France24 reported friday.

"If a person has assets in bitcoin and makes big profits, there will be no taxes", Javier Argueta, legal adviser to President of the Republic Nayib Bukele, told AFP. "There will be no taxes to pay either on the capital increase or on the income".

In addition, the newspaper noted that, amid concerns about financial stability given the inherent volatility of bitcoin's value, Argueta said transactions would be temporarily halted if its value ever collapsed.

The media said that, presidential advisor Argueta said that, the crypto wallet El Salvador is developing for use by its citizens will contain "relevant mechanisms" of traceability to mitigate the risk around the use of bitcoin for illegal activities.