El Salvador has positioned itself as a vibrant hub for Bitcoin investors, touting improvements in cryptocurrency regulation and personal security. However, recent findings suggest that these efforts have not successfully drawn the attention of the targeted investor demographic.
A public records inquiry conducted by the local Salvadoran news outlet El Mundo revealed that not a single passport has been issued under the “Adopting Bitcoin” program. This initiative was launched by Salvadoran authorities to offer “freedom passports” to Bitcoin investors who donate $1 million in Bitcoin or USDT to the country. The goal was to attract at least 1,000 investors and raise $1 billion in the process.
The General Directorate of Migration and Immigration, the agency responsible for issuing passports, confirmed to El Mundo that it has not processed any applications related to this program.
Meanwhile, the Central Bank of Brazil is exploring ways to capitalize on the growing popularity of stablecoins within the country. Industry stakeholders report that the bank is considering the introduction of a tax on stablecoin-based remittances as part of a comprehensive cryptocurrency regulatory framework expected to be finalized next year.
Local media indicate that the Central Bank may implement a licensing system for crypto companies based on the services they offer. For instance, companies involved in tokenization would need to apply for a standard virtual assets service provider (VASP) license, while those facilitating stablecoin exchange services might require a different license.
In Brazil, purchases of foreign currency, including U.S. dollars, are subject to a financial transaction tax. Although stablecoins are recognized globally as dollar proxies, they are classified as financial assets in Brazil, exempting them from taxation and allowing for their free use in remittances and international transactions.
In Bolivia, private institutions are beginning to embrace the cryptocurrency and stablecoin markets. Bisa Bank, the country’s fourth-largest banking institution, has launched a range of stablecoin products that enable customers to buy, sell, and hold USDT through its services.
Yvette Espinoza, president of Bolivia’s banking regulatory authority ASFI, has expressed support for this product launch, emphasizing the importance of USDT as a dollar proxy stablecoin. She highlighted that such offerings provide customers with alternative options to ensure the safety and reliability of their asset management.
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