The President of El Salvador believes that the creation of a friendly ecosystem for foreign businesses can attract more investment projects.
Nayib Bukele reported on Twitter about plans to offer citizenship to foreign crypto investors:
“I am submitting 52 legal reform bills to Congress to cut red tape, create tax breaks, make it easier to get citizenship, update securities regulation, give a sense of stability in exchange for investment. The plan is simple: while the world falls into tyranny, we will create a haven for freedom.”
According to the head of state, this step can attract more investment projects to El Salvador. Bukele believes that the reforms are a step forward towards strengthening the country’s economy.
The President did not specify whether the invitation applies only to investors in bitcoin or to all entrepreneurs. Under the phrase about tyranny, Bukele could mean the pressure from the International Monetary Fund and the US authorities, which El Salvador has recently faced.
The adoption of bitcoin as a means of payment has already had a positive impact on the tourism business in El Salvador. According to Tourism Minister Morena Valdez, the industry grew since the adoption of the bitcoin law in September 2021:
“We conducted a survey to check the activity before and after bitcoin. The tourism sector increased by more than 30% in December and November.”
Valdez noted that the introduction of bitcoin in El Salvador has greatly increased the number of tourists from the United States, up to 60% of all visitors. Before the law was passed, she said, most visitors came from neighboring countries in Central America. The minister added that the growth of the tourism industry in El Salvador has exceeded all government expectations, reaching 1.4 million people a year instead of the planned 1.1 million. As a result, the country has earned more than $1,400 million in foreign currency from tourism.
Recently, Nayib Bukele asked US senators not to interfere in the internal affairs of the country after they began to express strong concerns about the adoption of bitcoin as a means of payment in El Salvador. Last week, Fitch Ratings agency downgraded the country’s credit rating due to uncertainty with the support of the International Monetary Fund. Earlier, El Salvador’s finance minister announced that a $1 billion bitcoin bond issue would take place in March.
Source: Bits
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