Bitcoin and Bitcoin City in El Salvador [Bitcoin as legal tender in 2021]
Common folk doesn’t realize the USD value has been decreasing since 1950, we assume having more of this currency will place us at a higher purchase power place. While this is true, it is not the most profitable currency in existence. You probably already guessed which asset we are talking about, Bitcoin.
On June 4 and 5, President Bukele announced he would be issuing a law initiative to the Salvadoran congress to make Bitcoin a local currency. A few months later, Bukele announced the “Bitcoin City” initiative, during the Bitcoin week conference held in El Salvador.
Located along the Gulf of Fonseca, near the Conchagua Volcano in La Union, Bitcoin City promises its future residents 0% taxes on capital gains, property, and payroll. According to Bukele, the only Tax collected will be “IVA” (or VAT for its English acronym Valued-added tax) which will be used to fund the municipality, infrastructure, and city maintenance. All of this to attract foreign prominent Bitcoin investors, and develop the east side of El Salvador by creating new businesses, digital education, technology, transportation, etc.
This new city demonstrates the enormous potential for new businesses to emerge and existing ones to flourish, providing locals with the opportunity to grow in the social, educational, and financial aspects, therefore, their quality of life.
As one of the existent lines of businesses that could emerge along with Bitcoin city, Contact Centers would jump on top of the list. Contact Centers have been in El Salvador for almost two decades, and they have been a source of opportunities for both, Contact Center investors and workers. Without a doubt, the option to pay employees with cryptocurrencies will be made available and most likely overtake the dollar as the main payment option for employees.
As we transition to adopting Bitcoin in Salvadorans everyday life, investors should take the initiative to supply ways to incentivize new users to use digital currencies and educate them in financial literacy, to understand the benefits and potential cryptocurrencies have.