El Salvador is just the first, as parliamentarians in several South American countries have started supporting bitcoin

Following the passage of the Bitcoin Law in El Salvador, politicians in several Latin American countries have expressed interest in following up on the bill.

Nayid Bukele, president of the Central American country of El Salvador, announced today that the Salvadoran Congress passed the Bitcoin Act with an “absolute majority” vote, with 62 of the 84 lawmakers voting in favor.

This bill makes El Salvador the first country in the world to officially accept cryptocurrencies as legal tender.

“The purpose of this law is to regulate Bitcoin as an unrestricted legal tender, granting it the freedom to be used without limit in any transaction and without restriction on any ownership rights that a public or private natural or legal person may claim to travel. This is how this bill explains the status of Bitcoin. After the law takes effect, product prices can be marked in bitcoin, taxes can be paid in bitcoin, and gains from trading bitcoin or are subject to capital gains tax.

Following the passage of the Bitcoin Law in El Salvador, politicians in several Latin American countries have expressed interest in following through with the bill.

LaserEyes (#LaserEyes) is a meme strongly associated with cryptocurrencies, referring to users who p-laser eyes in photos of their avatars, a move often seen as support for cryptocurrencies. Previously, Buglei had changed his Twitter avatar to a laser eye after revealing the Bitcoin Act to the outside world. In addition, Bitcoin’s most famous supporter, Elon Musk, has also used a laser eye avatar.

El Salvador is just the first, as parliamentarians in several South American countries have started supporting bitcoin

After the President of El Salvador added his head to the laser eye, several Salvadoran legislators immediately responded to the trend. Including ECastroES, RubenFloresEs, CalebNNavarro, WilliamSorianoH and others.

El Salvador is just the first, as parliamentarians in several South American countries have started supporting bitcoin

The trend then crossed national borders and quickly spread to Latin American political circles.

On June 8, Paraguayan Congressman Carlos Rejala said he plans to release an “important project” related to Bitcoin later this week.

El Salvador is just the first, as parliamentarians in several South American countries have started supporting bitcoin

Today, Francisco Sánchez, the national representative of the Argentine province of Nebraska, changed his avatar to a laser eye. However, he did not reveal what his plans are for the advancement of Bitcoin in Argentina, tweeting only the words “new avatar” and a picture of the new avatar.

Later, Senator Indira Kempis from the Mexican state of Nuevo León also echoed the trend among Latin American politicians. In the early hours of this morning Beijing time, Kempis posted a photo with a laser eye and set this image as an avatar. The Economist then reported on the phenomenon.

El Salvador is just the first, as parliamentarians in several South American countries have started supporting bitcoin

This is not Kempis’ first foray into the crypto space. Last year Kempis was involved in a campaign called Blockchain Land, where he headed a team focused on the application of crypto security in Mexico.

Several South American politicians followed
The passage of the Bitcoin Law in El Salvador may have a demonstration effect in Latin American political circles. So far, Latin American politicians from seven countries have expressed their interest in bitcoin as well.

Today, Panamanian congressman Gabriel Silva tweeted about adding bitcoin and other cryptocurrencies to the country’s fiat currency, making Panama the second country to support the addition of cryptocurrencies to its fiat currency. If we want to be a true center of technology and entrepreneurship, we have to support cryptocurrencies.

In addition to the aforementioned Paraguayan Congressman Carlos Rejala, Francisco Sánchez, national representative of the Argentine province of Necen, and Mexican Senator Indira Kempis, there are also Panamanian Congressman Gabriel Silva, elected member of the Brazilian Legislative Assembly Fá bioMaiaOstermann, Colombia’s Presidential Advisor and Deputy Minister of Digital Economy Jehudi Castro Sierra, and Ecuador’s Deputy Minister of Economic Inclusion Julio Eduardo Clavijo Acosta, among others.

The Paraguayan legislator had similar expressions, “Our country needs to join hands with the new generation to usher in an innovative Paraguay before the world. He believes that the proposal he is about to submit aims to help Paraguay become the crypto hub of Latin America. If it is passed, a further bill will be submitted seeking Bitcoin to become legal tender in Paraguay.

For El Salvador, it would be significant for cryptocurrencies to become legal tender. Foreign currency repatriated to El Salvador from overseas labor is known to make up a significant portion of the country’s economy, accounting for about 22 percent of the country’s GDP. According to Bugley, the transborder transit losses avoided by using cryptocurrencies to transfer this wealth are in the millions of dollars.

The use of bitcoin has improved the lives and futures of millions of people,” Bugley said. Positioning Bitcoin as a legal tender could transform the Saarland’s remittance-dependent economy, allowing thousands of people outside the legitimate economy to be included in the financial system. Speaking at the 2021 Bitcoin Conference in Miami last week, Buglei said, “In El Salvador, 70% of the population is unbanked and working in the informal economy,” and that the Bitcoin law aims to create jobs and promote financial equality.

Crypto Offshore Financial Center Expected as Multi-Country Policy Gives Voice
Earlier today, Jiang Zhuoer, founder of Lepit Mining Pool, said that “it is a historic moment for Bitcoin that it will become legal tender in a number of countries. and compared El Salvador to the Cayman Islands, which may become an offshore financial center for the crypto world. He described the Cayman Islands as a small country with a population of 60,000, but with more than 100,000 companies registered there, including more than 700 banks, 800 insurance companies and nearly 10,000 hedge fund institutions, with a large number of internationally renowned companies registered there.

Offshore financial centers, as opposed to onshore financial centers, mean that an investor’s company is registered in an offshore jurisdiction, but the investor does not have to be physically present in the place of incorporation and their business operations can be conducted directly from anywhere in the world. Prominent offshore financial centers around the world include British Virgin Islands, Samoa, Cayman Islands, Bahamas, Guam, Isle of Man, etc.

Non-residents, low regulation and low taxation are the three main characteristics of offshore financial centers, making them popular with capital and investors. Avoiding foreign exchange control, regulatory arbitrage and banking expansion are the three main reasons for the rapid rise of offshore financial centers. Currently, there are different regulatory policies for the crypto industry in different countries around the world, and many countries are still in the ambiguous area. However, there are frequent investment activities in the crypto sector and a large number of high crypto net worth individuals with compliance needs. In this context, it is clear that the benefits of offshore crypto jurisdictions cannot be ignored.

Today, El Salvador will grant permanent residency to investors who invest more than 3 bitcoins (about $100,432 at press time), the country’s president said in a live Space broadcast. The country will create a trust fund to reduce the risk of investors buying bitcoin.

With the demonstration effect of El Salvador, South America may see a situation where multiple countries will compete for crypto businesses, investors And bring crypto assets, crypto businesses, and crypto industry into the legal offshore finance category. According to Jiang Zhuoer, the passage of El Salvador’s Bitcoin Law “is the biggest positive for bitcoin this year, surpassing short-term funding benefits such as the passage of the U.S. Bitcoin ETF and Apple’s purchase of bitcoin, making today a historic day.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/el-salvador-is-just-the-first-as-parliamentarians-in-several-south-american-countries-have-started-supporting-bitcoin/
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