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Key facts:
- Some 60 companies are processing their digital asset license to operate in El Salvador.
- Bitcoin (BTC) friendly regulation and tax benefits attract entrepreneurs.
The BTC addresses called “bitcoin whales”, which are those with more than 1,000 BTC, experienced a rebound, reaching their highest level since August 2022. “And I guarantee you that many of them are now arriving in El Salvador “Juan Carlos Reyes, president of the National Commission for Digital Assets (CNDA), told Money Investors during an interview.
For the official, the fact that many bitcoin whales are arriving in Salvadoran territory reflects what will happen in the future. “Successful bitcoin and other cryptocurrency projects are going to leave El Salvador because they are already arriving in this country and that is why the next whales of the ecosystem will leave here,” Reyes added.
“There are already many people saying wow, what is happening in El Salvador is beautiful ,” says the president of the CNDA. It is his way of explaining the economic rebound that the small Central American country that more than 2 years ago adopted bitcoin as legal tender will experience.
Also read: Bitcoin Halving: 5 strategies for before, during and after
Since then, electronic cash has been playing an important role in the country’s economy, in part thanks to the increase in tourism, because thousands of bitcoiners are attracted to its beaches and other territories. As well as the increase in foreign investment.
It was precisely on this last point that Reyes stopped during his conversation with Money Investors. “I recently submitted my management report for the first 100 days that I have been in office and we have seen with satisfaction that the growth of what we are doing is reflected.”
He adds that more than 60 bitcoin and other digital asset companies are currently registering in Salvadoran territory requesting a license through the CNAD. Reyes comments that, so far, the regulatory body has approved between 15 to 20 companies, while the process for the application of the rest continues.
“There are quite a few companies that are residing in El Salvador, because they believe in what we are doing with bitcoin, enough to leave their countries. Many paid a million dollars to obtain a Salvadoran passport because they are attracted by the tax benefits that El Salvador grants and the promises that the president has made, without leaving aside how beautiful this country is because we have excellent beaches and opportunities to exploit tourism. ”.Juan Carlos Reyes, president of the National Digital Assets Commission.
As Money Investors previously reported, El Salvador now has regulations that facilitate the process for foreign investors who support the country’s socioeconomic development with bitcoin to obtain nationality.
And in addition to this, the Salvadoran government launched a program to provide residency to about 1,000 people who decide to invest at least one million dollars in bitcoin and stablecoins such as tether.
A bitcoin country with tax benefits
In the opinion of Juan Carlos Reyes, El Salvador has one of the most innovative regulations in the world. He stated this recently in Davos during a parallel event to the World Economic Forum that took place in the Swiss city.
During his participation, Reyes defended the measure that establishes bitcoin as legal tender in the Central American country. He also explained the regulatory advances and the benefits that the Salvadoran economy obtains.
Clarifies that the Superintendency of the Financial System of El Salvador, together with the Central Bank, are the main regulators of the bitcoin industry, while the CNDA is governed by the legal framework that establishes the bases for the altcoin and stablecoin industry, It is also the body that authorizes the issuance and public offering of digital assets, by the State and also by private companies.
In that sense, Reyes also gave details about the private company E-grains that was authorized to execute what became the second tokenization in the country and that is ready to go on the market. It is the $ESOY token, representative of the economic rights produced in the trade of a bushel of soybeans.
All this happens while the adoption of bitcoin is silently growing in the country and can be seen in circular economies or citadels, such as Bitcoin Beach and Bitcoin Berlin, as well as the El Zonte Bitcoin Farmers Market, among others. other projects and communities.