El Salvador develops further its bitcoin strategy

[AmoreJaz]

No income, property, capital gain or payroll taxes!!?   

Sounds almost too good to be true. That is one way to attract whales and deep pockets into living in your country and city. To accomplish the polar opposite of capital flight.

Obviously it is meant to lure in people to start and live in their country but at some point they might start to put up taxes although the tax rate will be significantly lower than most country. This was one of the reason most rich people or business owner start to move to Malta and he is basically copying that idea right now

I saw news where IMF warn El Salvador about the risk involved with bitcoin. Let's see how the world leader reacts to it.

Yeah right, IMF stands for International Monetary Fund so that means they will use whatever necessary means to get people to stay away from cryptocurrency and that is obvious

that's fine to copy the idea as long as it will be effective from their end and its people are really benefiting from it. in couple of years, we may see the impact of this bold move by El Salvador towards crypto. and if they are successful, am guessing other countries may follow their journey.
on the note about IMF's reaction, definitely they are not up for it. after all, they want countries to rely on fiat as much as possible, as it is centralised. whereas, when a country is going into crypto, they won't get a hold of it.

[Mahanton]

No income, property, capital gain or payroll taxes!!?   

Sounds almost too good to be true. That is one way to attract whales and deep pockets into living in your country and city. To accomplish the polar opposite of capital flight.

Obviously it is meant to lure in people to start and live in their country but at some point they might start to put up taxes although the tax rate will be significantly lower than most country. This was one of the reason most rich people or business owner start to move to Malta and he is basically copying that idea right now

I saw news where IMF warn El Salvador about the risk involved with bitcoin. Let's see how the world leader reacts to it.

Yeah right, IMF stands for International Monetary Fund so that means they will use whatever necessary means to get people to stay away from cryptocurrency and that is obvious

that's fine to copy the idea as long as it will be effective from their end and its people are really benefiting from it. in couple of years, we may see the impact of this bold move by El Salvador towards crypto. and if they are successful, am guessing other countries may follow their journey.
on the note about IMF's reaction, definitely they are not up for it. after all, they want countries to rely on fiat as much as possible, as it is centralised. whereas, when a country is going into crypto, they won't get a hold of it.

One of the benefits when dealing up with Bitcoin is that it is really out of centralization thing and for sure President of El salvador do really recognize this benefit which is really out of centralization and its true that whatever things do happen neither positive or negative on this country then it would really vary on how the government of El salvador did really make out steps on dealing with their current new system
which is totally focusing out with Bitcoin.If there would be some sort of improvements then other countries might really consider on taking such the same step too.

[magneto]

Anyone else feel like this is the El Salvadorian government attempting to do a cash grab?

Use the hype that bitcoin adoption has generated, then go to the actual end goal which is to raise funds for their sovereign debt which were always risky but people now view as somehow safer than a lot of better debtor countries.

Just my thoughts.

[Darker45]

Anyone else feel like this is the El Salvadorian government attempting to do a cash grab?

I sincerely hope you are wrong. At this point, quite frankly, it could go either way. It is, therefore, completely understandable and even not unexpected that there are skepticism developed within some people not just of the ability of the El Salvador government and its leadership to deliver but also of the real motives behind all this.

Personally, I better give El Salvador as well as Bukele the benefit of the doubt. I, of course, wish them success. The success of this undertaking is not just the success of El Salvador and those who made everything possible but also of Bitcoin itself and especially of the businesses and the people who will no longer pay income tax, capital gains, property tax, payroll tax, and municipal tax.

[Kakmakr]

Lots of Negative Nancy replies to this innovation in here, but they are missing the bigger picture. El Salvador introduced this, because they want the mostly poor citizens to pay less remittance fees for international money transfers and they want them to pay less Banking fees.

They also want to create a city with less taxes and also an opportunity for international Crypto mining operations to relocate to, with renewable "clean" energy. They also want to create a tourism magnet for all Bitcoiners around the world... where you can pay with your favorite alternative currency. 

[Findingnemo]

Tax free is it really possible? Then how the government will spend money for the development of the country because tax is the main source of revenue for every government and from that only they allocate budget for everything that is going to happen in that country so its just nothing but a strategy to say that they are on the right track so can lure more investment into their country.

[justdimin]

No income, property, capital gain or payroll taxes!!?  

Sounds almost too good to be true. That is one way to attract whales and deep pockets into living in your country and city. To accomplish the polar opposite of capital flight.

Of course, politicians have made promises like this for a long time now. Even greece made big promises about the future of its solar power industry while in the midst of their great debt quandary.

Its easy to say and promise these things. Whether they become a reality is something else entirely.

How does it work though? Maybe we have been told differently and maybe we can't see it but I have to say something doesn't add up. If we have no taxes at all then who pays for the stuff a government needs to provide? What about the police? What about the firefighters? I mean you could make education and healthcare private and charge people with it but libraries? Hell there are so many other things that you need to consider as well.

It just doesn't make sense to me to pay zero taxes because it would be hard to live in a society where there is ZERO taxes available. There needs to be at least a little and that would be a lot better than paying 50% taxes like in my nation, but I want the taxes to drop, not be gone.

[arallmuus]

Anyone else feel like this is the El Salvadorian government attempting to do a cash grab?

I sincerely hope you are wrong. At this point, quite frankly, it could go either way. It is, therefore, completely understandable and even not unexpected that there are skepticism developed within some people not just of the ability of the El Salvador government and its leadership to deliver but also of the real motives behind all this.

Its as obvious as it can get. Every country that provide safe haven in form of taxes, security and other stuff are meant to grab cash from people that might want to visit or stay in their country. The offer needs to be as lucrative as it can get so people wont hesitate to move in but whatever it is, bitcoin gets a free worldwide hype thanks to that so yeah it works out good for both

[el kaka22]

Lots of Negative Nancy replies to this innovation in here, but they are missing the bigger picture. El Salvador introduced this, because they want the mostly poor citizens to pay less remittance fees for international money transfers and they want them to pay less Banking fees.

They also want to create a city with less taxes and also an opportunity for international Crypto mining operations to relocate to, with renewable "clean" energy. They also want to create a tourism magnet for all Bitcoiners around the world... where you can pay with your favorite alternative currency.  

There will always be a lot of negative reviews whenever someone does something good for crypto. I hate Elon Musk with a burning fire but the things he did for crypto is marvelous, and I support him only on those crypto views because everything else I hate him.

It means even if you dislike El Salvador, even if you dislike their president, even if you dislike the idea itself and how the money could be used differently, even if you believe this is a great idea but won't be done and used for president to steal money from public, whatever the reason you are not supporting it, it is clear that it will be a help towards crypto world and we should be very happy about it. Even the "news" of it helps crypto and that means as long as there are good news on crypto then we should be supporting it and I am 100% behind this new idea since it will help me grow my portfolio.

[Silberman]

I was actually very excited when I read on the news that El Salvador will build a Bitcoin City with no income tax, no capital gains tax, no property tax, and no payroll tax. That is one giant step only a bold leader could make. I wonder how effective that would be in attracting investors. It is worth anticipating. But, either way, I really admire leaders who, for better or for worse, are decisive enough to make radical steps toward development.

By the way, both your sources are only accessible to registered or subscribed readers.

It sounds good, too good to be true if I am honest, obviously this is the kind of thing the members of the forum have always wanted, however we must remember the aim of this market is financial independence from third parties through decentralization, so while at some point someone has to start a project like this and become the first city of its kind, it will be kind of dangerous at the beginning as there is only one of those cities meaning there will be a lot of bitcoin holders just in one city reducing the decentralization we have as right now bitcoin holders are all over the world.

[Darker45]

Anyone else feel like this is the El Salvadorian government attempting to do a cash grab?

I sincerely hope you are wrong. At this point, quite frankly, it could go either way. It is, therefore, completely understandable and even not unexpected that there are skepticism developed within some people not just of the ability of the El Salvador government and its leadership to deliver but also of the real motives behind all this.

Its as obvious as it can get. Every country that provide safe haven in form of taxes, security and other stuff are meant to grab cash from people that might want to visit or stay in their country. The offer needs to be as lucrative as it can get so people wont hesitate to move in but whatever it is, bitcoin gets a free worldwide hype thanks to that so yeah it works out good for both

To be fair, I don't think this is the kind of tax haven that is being offered in countries like Panama, Switzerland, Virgin Islands, Luxembourg, and others. So if you are referring to these places, I don't agree with you. I haven't seen the details of this Bitcoin City but I suppose it is not built for the rich foreigners from other countries to shirk tax responsibilities in their home countries. This is Bitcoin City so I assume that this does not offer all those kinds of offshore banking services and products which tax haven countries are famous for.

~snip~

It sounds good, too good to be true if I am honest, obviously this is the kind of thing the members of the forum have always wanted, however we must remember the aim of this market is financial independence from third parties through decentralization, so while at some point someone has to start a project like this and become the first city of its kind, it will be kind of dangerous at the beginning as there is only one of those cities meaning there will be a lot of bitcoin holders just in one city reducing the decentralization we have as right now bitcoin holders are all over the world.

On the contrary, it is my impression that there is indeed financial independence in a Bitcoin City or a Bitcoin country. Right now, solid Bitcoin advocates and supporters are flocking to El Salvador because of what they could offer. But I don't think decentralization is reduced in the process. It is always understandable that Bitcoin supporters would be attracted by Bitcoin-friendly places.