The President promised investors that there will be no taxes on capital gains.
Justin Sun assured that Tron will be the first company to establish offices in El Salvador.
Bukele highlighted as one of the main advantages for investors the "excellent climate, world-class surf beaches, beachfront properties for sale", adding that El Salvador is "one of the few countries in the world without property taxes".
On the other hand, he reiterated in his tweet that in his country "there is no capital gains tax on bitcoin, as it will be legal tender". He also offers "immediate permanent residency for crypto entrepreneurs".
https://twitter.com/nayibbukele/status/1401622548396314631
In response to Bukele's message, many of the followers, including those who identified themselves as cryptocurrency investors, responded to the tweet by pointing out that with this offer it would be advantageous to move to El Salvador.
Among those commenting on Bukele's account was Zhao Changpeng, CEO of Binance, who posted a gif of Mickey Mouse packing his bags.
Something similar did the founder of Tron, Justin Sun, who expressed the following: "crypto investors and entrepreneurs will start moving to El Salvador!".
https://twitter.com/justinsuntron/status/1401459710486671360
For this Monday, June 7, Sun makes another announcement on Twitter related to the topic, assuring that Tron will become the first crypto organization to establish an office in El Salvador.
Investments in El Salvador rebounded in the first quarter of 2021
Although President Bukele has not explained in which economic areas these bitcoin investments may be made, some local media in that nation review that during the first quarter of 2021 several announcements have been made about the injection of capital by the private sector. This, after 2020 marked by the pandemic and the freezing of several execution plans.
The confirmed projects include the construction, energy, telecommunications, real estate, and retail sectors that are betting on a more agile recovery of the business climate which is diminished by the biggest economic slump in 40 years (-7.9 %).
In total, the investment plans - which have been confirmed - have a combined value of more than USD 100 million. However, some are initiatives that were planned for 2020, but others are part of a strategic approach to reactivation.
Bukele's surprising statement
The details of the scope of the measure that would make the Central American country the first in the world to adopt bitcoin as legal tender is not yet known. However, Bukele's statement was made known in a message (on video) broadcast at Bitcoin 2021, a global conference held on June 4 and 5 in Miami, United States.
In his brief speech, Bukele revealed that he is working with the company Strike (a startup developer of a digital wallet) to build the infrastructure for the use of cryptocurrency.
During his speech, Bukele highlighted that bitcoin could be used with a digital wallet (like Strike) to receive remittances, which "will increase remittances by the equivalent of billions of dollars each year," avoiding amounts lost in middleman payments. "Bitcoin will have 10 million potential new users and the fastest growing way to transfer USD 6 billion a year in remittances," he said.
The president also pointed out the three keys for his country to adopt bitcoin as legal tender, as reviewed by this media on June 6, 2021. He highlighted that the new law would seek to replicate the Bitcoin Beach project in Playa El Zonte, where the population uses cryptocurrency as a means of payment.
