Permanent residence in El Salvador for crypto entrepreneurs

[Leviathan.007]

As we reported a few days ago, the President of El Salvador, Nayib Bukele, announced during the Miami Conference that the country intends to accept bitcoin as a currency in the country. Now the 39-year-old has added to the appeal of his proposal on Sunday with his new remarks on Twitter. Bukele announced in his latest tweet that:
"The government will immediately grant permanent residency to crypto entrepreneurs."
Today, his proposal was approved by 62 official members of parliament against 19 votes against. Explaining the bill, Bukele added that the country is also proposing a new law to parliament that would allow anyone with a 3-bitcoin investment in the El Salvadorian economy to obtain permanent residency.
It is interesting to know that the official currency of El Salvador is the US dollar. About a quarter of El Salvadorians live in the United States, and last year they sent more than $ 6 billion in remittances despite the Corona epidemic.
Nayib Bukele acknowledged that the move was aimed at creating jobs and providing employment opportunities for thousands of people who now operate outside the country's legal economy. He noted that 70 percent of the population now does not have a bank account and operates in an informal economy.

Source: Yahoo News


Anyone from El Salvador can give any feedback about living costs and living situation in this country?

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[KennyR]

That's really a big step forward taken by the President. No country will have the courage to take such an action plan and execute it. Though the country is small, they're well advanced and the president is futuristic. The thought about the future has made home take this perfect decision aiming the life of all levels of people.

Allowing permanant residence will truly allow more people to atleast have a try on making some investment on the country. Mostly Asians will be getting interested on this offer of permanent residence.

[Kong Hey Pakboy]

That's actually pretty good but there must be a big catch when they are going to do this to cryptopreneurs, and I think that it will be a lot. Hopefully, just making more jobs and paying a good tax is enough for El Salvador.

[The Sceptical Chymist]

He noted that 70 percent of the population now does not have a bank account and operates in an informal economy.

Wow, that's quite a statistic--and I'm not sure how that 70% operates without banking services.  Sure, you can buy food, clothes, and pay your rent with cash but where I live it's pretty hard to pay for things like utilities, internet, and phone service without having a checking account that has a debit card linked to it.  I don't think El Salvadorians are using credit cards for all of that, since it's usually hard to get one unless you have some kind of bank account.

Anyone from El Salvador can give any feedback about living costs and living situation in this country?

I'm curious about that as well, especially the living situation.  If I'm not mistaken, there's a lot of crime in that country and even if the cost of living was dirt cheap and I could afford a mansion for pennies on the dollar of what it would cost in the US, I'm not sure I'd want to live in a place where I didn't feel safe.

Still, El Salvador has a nice climate and aside from the country's problems it might be a great place to live, especially if they're welcoming bitcoiners (or at least bitcoin entrepreneurs).  Hopefully someone from there will reply here and give us the skinny on what life is really like there.  I'm very curious.

[so98nn]

He noted that 70 percent of the population now does not have a bank account and operates in an informal economy.

Wow, that's quite a statistic--and I'm not sure how that 70% operates without banking services.  Sure, you can buy food, clothes, and pay your rent with cash but where I live it's pretty hard to pay for things like utilities, internet, and phone service without having a checking account that has a debit card linked to it.  I don't think El Salvadorians are using credit cards for all of that, since it's usually hard to get one unless you have some kind of bank account.

[...]

The real question is how the hell Government is operating even if they dont have the income? I mean if 30% peeps have the bank account then only those must be tracked by IRS and get paid for taxes. Wondering how they done with the infra of city and counties in there with such low income and high population.

Secondly, having crypto as option does not seem to be ok for miami if people are not even using the bank accounts? There must be reason why they dont use it. May be hand in hand cash structure is being preferred?

[Lucius]

Anyone from El Salvador can give any feedback about living costs and living situation in this country?

I doubt that someone from that country will answer your question - but the internet is full of information that interests you. What should always be taken into account is the fact that we can talk about average prices or prices for a specific city or region - and of course there is a universal rule that big cities are always more expensive to live in compared to some rural areas.

From what I’ve read, El Salvador is somewhere in the middle in terms of the cost of living when it comes to Central America and it’s not exactly cheap if you look at the big cities of San Salvador, Santa Tecla, or Antiguo Cuscatlan.

I will list some interesting facts from the article.

The cost of living in El Salvador for a family of four, without rent, ranges from $1,000 to $2000. However, these ranges can go as low as $600 or higher than $2000.

Purchasing real estate in El Salvador is almost the same as buying in other countries, it is all about the location. The more desirable the area or neighborhood is, the more it will cost.

On the low end and in safe neighborhoods, you could probably buy a smaller house or condominium with about $175,000. As for the higher end, in these cities, you can pay $900,000 or more for a home.

El Salvador is full of colorful small towns such as Suchitoto, Juayua, Apaneca, and Sensuntepeque. Buying real estate in these towns is way less expensive, to purchase a house you will need $35,000 on a low cost, and $150,00 or more at the higher end.

The primary utilities are Electricity that will cost about $75 per month, cooking gas about $30 per month, and Water about $35 per month. Additionally, home cable with unlimited internet will cost between $50 to $90 per month.

A single person in El Salvador can live comfortably on $200 a month of food, of course, some people might go lower or higher than the $200. It all depends on the individual’s wants, needs, and budget.

When I look at these prices, I can't say that it's something affordable from my EU perspective - because I pay for a landline phone + high speed internet only around 20 EUR (unlimited calls&data), and the price of real estate in somewhat safer areas seems very high. As for crime, the situation has reportedly improved significantly with the arrival of a new president, but how safe the country actually is... -> more on that topic - Crime in El Salvador

[bryant.coleman]

For many of us, the cost of living is not going to be an issue (even if it gets a bit expensive, the tax waiver on profits from Bitcoin will more than make up for it). My primary concern is the presence of various transnational gangs such as MS13 and Barrio 18. There are an estimated 60,000 gang members in El Salvador. What is the guarantee that they will not target crypto entrepreneurs? And don't forget that many of these gangs are part of the drug war in Mexico and they have thousands of members even in the United States.

[monineklutak]

That's really a big step forward taken by the President. No country will have the courage to take such an action plan and execute it. Though the country is small, they're well advanced and the president is futuristic. The thought about the future has made home take this perfect decision aiming the life of all levels of people.

Allowing permanant residence will truly allow more people to atleast have a try on making some investment on the country. Mostly Asians will be getting interested on this offer of permanent residence.

Regardless of whether the plan has been well considered or not, I am very impressed with the plan that was made,
I don't know if this will interest a lot of people or not but I'm pretty sure it will,
We'll see in the future whether there will be a follow-up to this plan

[Vatimins]

     Way to go for the guy. This guy's efforts will really pay off in the future, I am very sure of it. This will really make el salvador flourish since this gives way for its people to have more alternatives in terms of investing and managing assets/funds. I really think that thi will make a huge impact on the whole world and depending on the results, may indeed put pressure on other leaders to either support the idea of adopting crypto currencies fully or banning it entirely. I just hope that the plan really works so that world wide adoption of crypto currencies can finally come to fruition.

[stompix]

Wow, that's quite a statistic--and I'm not sure how that 70% operates without banking services.  Sure, you can buy food, clothes, and pay your rent with cash but where I live it's pretty hard to pay for things like utilities, internet, and phone service without having a checking account that has a debit card linked to it.  I don't think El Salvadorians are using credit cards for all of that, since it's usually hard to get one unless you have some kind of bank account.

Not surprisingly, they rely on remittance and tourism, the rest of the country is dirt poor so no wonder they don't have an account with far too little money to spend on other than necessities, why having a bank account when it will stay empty? As for utilities, internet, all that, welcome to Eastern Europe at the start of the century, paying with a bank account would have been far more troubling than going to their office and pay with cash. I remember waiting in lines even half an hour to be able to pay bills.

The real question is how the hell Government is operating even if they dont have the income? I mean if 30% peeps have the bank account then only those must be tracked by IRS and get paid for taxes. Wondering how they done with the infra of city and counties in there with such low income and high population.

Do you think that without a bank account you don't pay taxes?
They tax your employees when they pay you, even if it's in cash, you pay VAT when you buy something from a merchant, just because they only deal in cash it doesn't mean you can void taxation, and in poor countries, it's usually the poor people who are not that keen on doing so, they can't afford the luxury of a lawyer and they are far more afraid than gangs of going to prison.

Besides, even countries like Argentina and Mexico were well below that level at the start of the last decade so, it's more normal than you think.

[1l1l11ll1l]

Nayib Bukele acknowledged that the move was aimed at creating jobs and providing employment opportunities for thousands of people who now operate outside the country's legal economy. He noted that 70 percent of the population now does not have a bank account and operates in an informal economy.

I think this is the essence of them making bitcoin a legal tender. I can't comment much on this, including in terms of taxes and others, because I haven't seen a significant impact in these policies and regulations. maybe they are still compiling the follow-up.

[laredo7mm]

It's just the start-up. I saw some other politicians are also supporting bitcoin as legal tender and they want to propose a bill about it. This is a significant moment in the crypto industry and shows the bright future of crypto. Others will follow up soon for not being so late in the adoption. A courageous decision for country leaders around the world.

[Ucy]

As we reported a few days ago, the President of El Salvador, Nayib Bukele, announced during the Miami Conference that the country intends to accept bitcoin as a currency in the country. Now the 39-year-old has added to the appeal of his proposal on Sunday with his new remarks on Twitter. Bukele announced in his latest tweet that:
"The government will immediately grant permanent residency to crypto entrepreneurs."
Today, his proposal was approved by 62 official members of parliament against 19 votes against. Explaining the bill, Bukele added that the country is also proposing a new law to parliament that would allow anyone with a 3-bitcoin investment in the El Salvadorian economy to obtain permanent residency.
It is interesting to know that the official currency of El Salvador is the US dollar. About a quarter of El Salvadorians live in the United States, and last year they sent more than $ 6 billion in remittances despite the Corona epidemic.
Nayib Bukele acknowledged that the move was aimed at creating jobs and providing employment opportunities for thousands of people who now operate outside the country's . legal economy.. He noted that 70 percent of the population now does not have a bank account and operates in an . informal economy.

Source: Yahoo News


Anyone from El Salvador can give any feedback about living costs and living situation in this country?

Trying to properly understand what they mean by Legal & informal economy.
Guess the opposite of the Legal economy is Illegal economy. The terms should be properly defined to mean safe/moral economy else I see a situation where lawless rulers misinterprete it for their own evil agenda.

That part of the economy has alot of businesses (especially rural/traditions businesses) that provide products that are way better and healthier than businesses that seem regulated.
Government should emphasize on safety and good products and services. Businesses could be penalized if there are proofs their products and services are harmful to people/society.
 They could simply follow good and reasonable rules. Blockchain and similar tech could help in automating certification.



Edit: In regards to the incentives to crypto entrepreneurs, I actually prefer to build from any part of the world especially as a nomad.

[int03h]

I don't know if Bitcoin payments are in vogue here as transaction costs are quite high and it is not suitable for regular use. Admittedly, this country has a good promotion to crypto lovers. They will likely attract more tourists in the coming years.

[dothebeats]

It's a good incentive, but how much of an incentive would it really be for crypto entrepreneurs if El Salvador hasn't much to offer in terms of demand and actual utility for the startups/companies? Perhaps their residency, identity, and legality are covered on all bases of El Salvador, but if there isn't anything that will add value to the company, then it's not really a good decision to move to the country and settle there. It's a good strategy to try to rebuild the economy, but not so much incentive towards companies that may settle there.

[el kaka22]

This whole deal with El Salvador is getting bigger than I expected, I mean I like the situation don't get me wrong but I also believe that the news is a good news but people are trying to show it as great news, there is a big difference. At the end of the day we need to still wait and see what it will be, remember Venezuela having petro coin? They wanted to save their economy that way as well but what happened? They ended up with a ton of problem anyway.

This is why we need to see what is going to happen with this and depending on the results this could be amazing news but if it is like Venezuela deal then this will be not important at all. I still believe one nation caring so much for crypto is great but who will care when it is El Salvador? Give me Canada or something and people will actually think about moving their operations there as well.

[stompix]

This is why we need to see what is going to happen with this and depending on the results this could be amazing news but if it is like Venezuela deal then this will be not important at all. I still believe one nation caring so much for crypto is great but who will care when it is El Salvador? Give me Canada or something and people will actually think about moving their operations there as well.

Venezuela is not really the best example, they only wanted to promote their shitcoin and nothing else.
If you really want to look at a previous fail, that was Belarus, Lukashenko tried the same, no taxation, making crypto legal, attracting business and so on, 1, 2 , well the plan never got any traction apart from a few businesses that were in fact run by government officials. Then the protests started and...who would want to go now there?

But El Salvador might be different, of course only one in a thousand will decide to move there because there are a ton of drawbacks, but despite the crime, you're not dealing with a real dictatorship that in a matter of seconds can decide to seize your whole company, not while they still need US help, both for their currency and their economy. So politically it will be safer, just open a few offices in the good areas and that's it. Of course, I don't see thousands of salvadorians using bitcoin for purchases next month, but there will be a little bit of usage that can grow easily if we adoption would also start with LN in the front, it would be awesome if we fast forward to it from the start.

Maybe yeah, it's a bit of hype, but at the same time, one must think that this might be just the beginning, if tomorrow another country does the same then the hype is justified.

[Hydrogen]

I think nations pass pro bitcoin legislation to attract wealthy investors. Who they know will create jobs and business. That will in turn boost their local economy and tax revenues.

Its a basic formula we see repeated all over the world, that has been proven to be effective.

If it is true that embracing emerging innovations and trends lead to economic growth. It will be interesting to see how much china's economy shrinks as a result of its anti bitcoin and anti crypto policies. It may seem like a power move on china's part to ban bitcoin related industry. But there could also be a spectacular backlash as china sees its economy contract as a result.

This trend is probably one of the biggest obstacles to implementing global taxation standards. Many small nations rely upon extending favorable taxes to the wealthy, for their own survival.

[Rruchi man]

It is a very nice and bold move from the El Salvadorian president to make the country more crypto friendly by accepting BTC as a legal tender and granting permanent residence for crypto entrepreneurs. Although this decision might make the countries that neighbor El Salvador to follow suit, i highly doubt that it will have the larger effect, that is - Many other countries following in the footsteps of El Salvador.

If countries like the United States, Germany, China and the likes were the ones to have announced acceptance and adoption of btc, by now we would have seen the effect massively on the price and many crypto entrepreneurs migrating to seek residence there. However this is not the case for El Salvador.

For the record, even with the very friendly crypto policies, it is not a country that i will want to seek permanent residence in. It is a country that has many of its citizens seeking a life elsewhere because of poverty and crime rate.

[ahsanif]

When the most important person in the country has said that, it means there is certainty that bitcoin will become legal tender in El Salvador