Puerto Rico May Look To Bitcoin Benefits
The Puerto Rican economy is very volatile right now. The ongoing crisis seems to be getting worse everyday. The small population of Puerto Rico has one of the biggest outstanding debts compared to other large countries surrounding it. With over 70 billion USD in debt and a recent credit rating downgrade the citizens are experiencing the turmoil first....
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Puerto Rico has recently used legislation to force capital controls. The country has imposed a 2% fee on any money transmission, forcing Paypal's to pull out of the country. Following an attempt to start capital controls, Puerto Rico government passed a law that forces all peer-to-peer transactions to be taxable at a 2% rate. With this move the country's government is looking to extract any additional sources of income from Puerto Rican citizens. This was the main reason leading the international online financial institution, PayPal to abandon the country. With the new imposed fees PayPal....
To mitigate austerity and resolve debt, Puerto Rico should follow in El Salvador’s footsteps and make bitcoin legal tender.
Working out a repayment plan should be the top priority for the Puerto Rican government, but that will not be the case for the foreseeable future. Puerto Rico is not often mentioned in a positive content when it comes to the financial sector. Neither is this story, unfortunately, as the country decided to default on its debt. But at the same time, the reason for doing so makes a lot of sense. All of this is still somewhat good news to push Bitcoin adoption in the country to new heights, though. Defaulting on debt is never a good thing, particularly not for a region so deeply indebted as....
Crypto capital is moving to Puerto Rico as tax regulations are much more favorable than in the U.S. proper. The United States territory of Puerto Rico is seeing a resurgence of interest among crypto investors attracted by the fact it doesn’t charge federal income tax and eligible investors can pay zero taxes on their crypto gains.Under local law Act 22, those who live in Puerto Rico for at least half of the year are exempt from taxes on interest, dividends and capital gains — meaning they can keep most or all of the profits from crypto or other investments without having to renounce U.S.....
Puerto Rico defaulted on its public debt. The US island territory failed to pay its general obligation bonds on Friday. It owes an estimated $800 million to creditors, while only retaining $350 million in cash on hand. A spokesperson for the governor defended the decision on Thursday: “This administration continues to take historic steps to ensure the residents of Puerto Rico continue to receive essential services while the commonwealth continues to face a delicate financial situation.” Debt in theory guaranteed by the Puerto Rican constitution. According to the constitution of Puerto....