- The country is now profiting 70% on the dollar cost average purchase price.
- El Salvador is taking steps to attract bitcoin aficionados and international investors.
President Nayib Bukele of bitcoin-friendly El Salvador has done away with income taxes on foreign investments entering the country.
Bukele stated in a post on X:
“Congress has reformed our income tax law, for international investments and money transfers, dropping the rate from 30% to 0%,”
Since September 2021, when it became the first government to officially recognize bitcoin (BTC) as legal currency, El Salvador has been actively amassing BTC. The Central American country’s coffers contain almost $84 million in unrealized gains from its assets.
The current Bitcoin boom has been beneficial to El Salvador, according to President Nayib Bukele’s policy of purchasing Bitcoin. The country is now profiting 70% on the dollar cost average purchase price.
With Bitcoin’s price reaching a new record high of over $72,000 on March 11, El Salvador’s crypto treasury is currently $85 million in profit, as reported on the website of Nayib Bukele Portfolio Tracker.
Attracting International Investors
After declaring bitcoin to be legal cash in September 2021, the Central American nation started purchasing the asset. Bitcoin was worth $51,769 when the first 200 BTC purchase was made. However, Bukele’s method came under scrutiny after Bitcoin’s value plummeted from $69,000 in November 2021 to $16,000 in the subsequent bear market, severely damaging the portfolio’s value.
However, it has now rocketed into profit after breaking even once again in February when Bitcoin prices surpassed the dollar cost average of $42,600.
El Salvador is taking steps to attract bitcoin aficionados and international investors, and this tax change is just the latest move in that direction. In addition, the country passed a bill in December that would provide citizenship to bitcoin investors who contribute to the nation.
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