El Salvador will exempt foreigners from paying bitcoin taxes to encourage investment, report says

El Salvador, which this month became the first country to make bitcoin legal tender, will exempt foreign investors from paying taxes on their profits from the cryptocurrency, according to an AFP report.

“There will be no taxes to pay on either the capital increase or the income,” from bitcoin, Javier Argueta, a legal adviser to El Salvador President Nayib Bukele, told AFP in a report published Friday.

“This (is done) obviously to encourage foreign investment,” Argueta was quoted as saying. The Central American country launched bitcoin as legal tender on September 7, in part to help combat persistent hyper-inflation.

Argueta also the government hopes that bitcoin as a legal payment option will cut millions of dollars off commissions on remittances sent home from abroad, mainly the United States.

Bitcoin on Wednesday slipped 0.2% to $47,805.

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