El Salvador's President Nayib Bukele has submitted the necessary paperwork for his re-election bid in the nation's February 2024 presidential contest.
He's registered as his party's candidate amid concerns around the constitutional legality of his consecutive term bid. The skepticism arises from the Salvadoran constitution, which critics argue, prohibits immediate re-election.
“Five more, five more and not one step back” Nayib Bukele gives his speech in front of thousands of Salvadorans after registering his presidential candidacy for re-election. “We need 5 years to continue improving our country.”
Despite this, an opinion poll illustrates a substantial lead for Bukele with a projected 68.4% of the votes, reflecting his considerable popularity among the populace.
Nayib Bukele's presidency, beginning in 2019, saw his party, Nueva Ideas, break the longstanding two-party dominance between the Nationalist Republican Alliance and the Farabundo Martí National Liberation Front (FMNLB).
President of Bitcoin
During his tenure, a landmark policy was the adoption of Bitcoin as legal tender, a move aimed at fostering economic growth and attracting foreign investments, although it has been deemed an "opaque experiment" by critics.
During El Salvador crypto hub
The adoption of Bitcoin as legal tender and the availability of crypto licenses create a crypto-friendly market, attracting cryptocurrency exchanges, wallet providers, payment processors, and blockchain startups. Companies can tap into this market and offer their services to the local population.
El Salvador offers two types of licenses for cryptocurrency activities: a "Cryptoservices Provider" permit and a "Virtual Asset Management" license. The former allows legal entities to trade or exchange digital assets for clients, while the latter permits entities to hold or manage digital assets on behalf of others.
The process of obtaining a crypto license in El Salvador entails registering a company, developing a business plan along with Anti-Money Laundering (AML) and Know-Your-Customer (KYC) policies, and complying with local laws2.
Notably, Bitfinex was granted the first license for digital asset service providers, and Binance became the first fully licensed cryptocurrency exchange in El Salvador, with Reltime being the first to receive a crypto custodian license.
Tax Incentives and Exemptions:
Companies with a cryptocurrency license in El Salvador enjoy exemptions from fees, taxes, and duties on digital assets, including capital gains and ordinary income. However, other taxes and government fees can be paid with cryptocurrency.
Under the leadership of President Nayib Bukele, El Salvador has emerged as a pioneering nation in the cryptocurrency domain, notably being the first country to adopt Bitcoin as legal tender. The progressive crypto licensing framework and tax incentives have positioned the nation as a potentially attractive hub for crypto and blockchain enterprises. Despite the constitutional and human rights controversies surrounding Bukele's tenure, his bold moves in the crypto sphere showcase a futuristic vision that aligns with the global trend towards digital currency adoption. This initiative not only puts El Salvador on the map in the crypto world but may also signal a new era of economic possibilities for the country amidst its battle against longstanding issues of gang violence and economic instability.