El Salvador’s Focus on Surfing and Bitcoin Drives Investments and Global Attention.
“The government has really put an emphasis on surfing (and bitcoin!).”– Kelly Slater
In recent times, the transformation happening in El Salvador has garnered significant attention. Surf legend Kelly Slater, during his inaugural competition in the country in early June, succinctly captured the essence of the changes. This renewed optimism and interest have already had a profound impact on the Bitcoin industry.
Shifting Attention to Bitcoin in El Salvador
Despite not playing a major role in the local economy dominated by USD payments and services, bitcoin has become a central part of President Nayib Bukele’s administration’s strategy to attract capital and opportunities.
Surprisingly, this strategy has been effective, with bitcoin companies and talent now turning their gaze towards El Salvador, even in the midst of the bitcoin bear market.
El Salvador’s Bitcoin Strategy Extends Beyond the Local Economy
El Salvador’s commitment to bitcoin is not confined to its local economy. In May, the bitcoin rewards app Fold made headlines by announcing its global expansion in partnership with VISA, with a specific focus on Latin America.
In an interview, Fold CEO Will Reeves emphasized that El Salvador was the ideal choice due to its unwavering commitment to bitcoin and the abundance of exceptional talent. Moreover, the regulatory framework established by the government plays a crucial role in attracting investments.
Advantages for Entities Operating in El Salvador
President Bukele has introduced a range of substantial benefits for entities operating in El Salvador. Reeves, according to his statement, asserts that these benefits surpass mere protections, and remain unparalleled in North America, Central America, and South America.
In addition to recognizing bitcoin as legal tender in 2021, El Salvador has enacted a comprehensive Digital Assets law that regulates various crypto-assets and their issuance.
Furthermore, the recent approval of the Promotion of Technological Innovation and Manufacturing law in April 2023 offers tech companies investing in El Salvador an exemption from paying income and capital gains taxes for a period of 15 years.
This incentive applies to both domestic and international entities. It creates opportunities for local startups to capitalize on the benefits as well.