As many of us already know El Salvador sits on $84M dollar unrealised profit from holding since September 2021, A government that completely supports and encourages BTC got me thinking how it is going to work in Long-Term? Dropping the tax on Crpyto from 30% to 0% is just beyond me. Keep in mind that El Selvador is not a First world country, It is a Third World developing country. How are they going to develop infrastructure and invest lots of money into education and health sectors? Everyone now living there is going to choose crypto over their local currency which is gonna make the whole country decentralised.
Their long-term strategy is to attract many investors and business owners and show them that El Salvador is a crypto heaven country. To my mind they are trying to copy Ireland. Ireland is a tax haven because of its taxation and economic policies. El Salvador is doing the same but instead of fiat, they do it on Bitcoin. Since they don't have competitors in Bitcoin, it's really going to help them, especially now that Bitcoin and cryptocurrencies are booming. Being first is the key to success. I think that Bukele did a very smart step in helping his country becoming developed country in a short time. It's very hard for as dangerous country as El Salvador to become a normal country and he is doing everything well.
Btw crypto is not going to make El Salvador decentralized because I believe they still need to use centralized system.