The seed that will eliminate taxation on crypto
Back in 2015 Bitcoin lightning network was proposed and launched as a beta in 2018. A few thought back then this would be the beginning of a huge change which wrote its second page on September 7th, when El Salvador became the first state nation adopting bitcoin as a legal currency in the country.
The lightning network now houses over 2,400 BTC in more than 73,000 channels, the first day the system was launched in El Salvador saw almost 2,000 new channels opened and 100 additional bitcoin stored in them.
But as interesting as this may be as it is the first country to adopt crypto, many people have not yet realized what this means for the world, not just for Salvadorians. Only a few days ago a new study mentioned the millions of dollars in remittance services like those offered by Western Union will be saved as Salvadorian immigrants will stop using those services to directly send Bitcoin instead. CNBC News
72 hours after bitcoin officially became a legal tender, a government advisor for the Central American country revealed it will exempt foreign investors from paying taxes on Bitcoin profits, both on capital gains and income in bitcoin. With this move, El Salvador hopes to encourage foreign investment, according to Javier Argueta, legal advisor to President Nayib Bukele.
This opens the door for huge capital moves to the country, from those millionaires not happy having to pay crypto taxes in their countries from capital gains. Soon other nation-states will emulate what El Salvador has done to attract capital.
As occidental countries start seeing how their crypto wealth leaves not happy with the taxation systems they have implemented they will end up changing them and all fiscal laws will end up being redefined.
We are witnessing not only the change of the financial traditional system but also the fiscal ones.
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