Schiff Sovereign's Take on El Salvador
In 2021, El Salvador made history by becoming the first country to officially adopt Bitcoin as legal tender (alongside the US dollar).
Due to its official status, any transactions in and appreciation of BTC will not be taxed by El Salvador.
Nayib Bukele, the country’s energetic millennial president, announced a whole array of new laws and initiatives, including a “Bitcoin City”, which will be built on the base of the Conchagua volcano. (The city will benefit from the cheap renewable energy that it produces.
Literally overnight, one of the poorest and most crime-ridden countries in the Americas appeared on the radar of thousands of crypto enthusiasts willing to invest in the country.
(For decades, El Salvador’s largest source of income has been remittances from its large diaspora, and local gangs have been the country’s largest “employers”.)
We admire the radical steps El Salvador is implementing to attract significant investment and improve the quality of life for locals. We expressed our thoughts about El Salvador in this report.
Still, we remain skeptical about the country’s current suitability for our subscribers, as there are presently many unanswered questions.
Will the announced Bitcoin City be successfully constructed, for example?
And what happens to all these initiatives if Bukele won't get re-elected?
We hope that El Salvador will execute its ambitious plans, and we will continue monitoring its progress with great interest.
And perhaps in a few decades, El Salvador can indeed become a prosperous and livable place. After all, Singapore was able to pull off a similar feat by making a giant leap in development within a single generation, and becoming one of the most advanced nations on the planet.
But in the meanwhile, a LOT of hurdles will need to be cleared before El Salvador can become nearly as successful.
Due to its official status, any transactions in and appreciation of BTC will not be taxed by El Salvador.
Nayib Bukele, the country’s energetic millennial president, announced a whole array of new laws and initiatives, including a “Bitcoin City”, which will be built on the base of the Conchagua volcano. (The city will benefit from the cheap renewable energy that it produces.
Literally overnight, one of the poorest and most crime-ridden countries in the Americas appeared on the radar of thousands of crypto enthusiasts willing to invest in the country.
(For decades, El Salvador’s largest source of income has been remittances from its large diaspora, and local gangs have been the country’s largest “employers”.)
We admire the radical steps El Salvador is implementing to attract significant investment and improve the quality of life for locals. We expressed our thoughts about El Salvador in this report.
Still, we remain skeptical about the country’s current suitability for our subscribers, as there are presently many unanswered questions.
Will the announced Bitcoin City be successfully constructed, for example?
And what happens to all these initiatives if Bukele won't get re-elected?
We hope that El Salvador will execute its ambitious plans, and we will continue monitoring its progress with great interest.
And perhaps in a few decades, El Salvador can indeed become a prosperous and livable place. After all, Singapore was able to pull off a similar feat by making a giant leap in development within a single generation, and becoming one of the most advanced nations on the planet.
But in the meanwhile, a LOT of hurdles will need to be cleared before El Salvador can become nearly as successful.
