El Salvador becomes the first country to legalize Bitcoin as a legal tender. After this, a government advisor on Friday said that El Salvador will exempt foreign investors from taxes on bitcoin profits.
Javier Argueta, the legal adviser to President Nayib Bukele, told AFP, “If a person has assets in bitcoin (BTC) and makes high profits, there will be no tax. This will be obvious to encourage foreign investment and there will be no taxes to pay on either the capital increase or the income”.
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The El Salvador government says their experiment will give many Salvadorans access to bank services for the first time, and hopes it will save millions of dollars off commissions on remittances sent home from foreign countries, mainly the United States of America. Remittances account for more than a fifth of the country’s GDP.