BTC addresses known as “Bitcoin whales,” which are those with more than 1,000 BTC, experienced a surge, reaching their highest level since August 2022. “And I guarantee you that many of them are now in El Salvador,” Juan Carlos Reyes, president of the National Commission for Digital Assets (CNDA), told CriptoNoticias during an interview.
For the official, the fact that many Bitcoin whales are arriving in Salvadoran territory reflects what will happen in the future. “Successful Bitcoin and other cryptocurrency projects will leave El Salvador because they have already arrived in this country, and therefore the next whales of the ecosystem will leave here,” Reyes added.
“There are already many people who say wao, How wonderful what is happening in El Salvador“, emphasizes the President of the CNDA. This explains the economic boom that the small Central American country will experience, which introduced Bitcoin as legal tender more than two years ago.
Since then, electronic cash has played an important role in the country's economy, also thanks to increasing tourism Thousands of Bitcoiners are attracted to the beaches and other areas. As does the increase in foreign investment.
It was on this last point that Reyes stopped during his conversation with CriptoNoticias. “I recently presented my management report for the first 100 days of my term in office and we were pleased to see that this reflected the growth in our work.”
Add that more than 60 companies Bitcoin and other digital assets are currently being registered in Salvadoran territory and applying for license through the CNAD. Reyes notes that the regulator has approved between 15 and 20 companies so far, while the application process for the rest is still ongoing.
“There are a whole bunch of companies that are based in El Salvador because they are convinced that what we are doing with Bitcoin is enough to make them leave their countries.” Many have paid a million dollars to have one Salvadoran passport because they are attracted by the tax advantages that El Salvador grants and the promises that the President has made, without forgetting the beauty of this country, because we have excellent beaches and opportunities for tourism to use. “.
Juan Carlos Reyes, President of the National Digital Assets Commission.
As CriptoNoticias previously reported, El Salvador now has regulations in place that make the process easier for supporting foreign investors the socio-economic development of the country with Bitcoin, obtain citizenship.
In addition, the Salvadoran government has launched a program aimed at granting residency to approximately 1,000 people who decide to invest at least a million dollars in Bitcoin and stablecoins such as Tether.
A Bitcoiner country with tax advantages
According to Juan Carlos Reyes, El Salvador has one of the most innovative regulations in the world. This was recently noted in Davos during a parallel event to the World Economic Forum in the Swiss city.
During his participation, Reyes defended the measure that establishes Bitcoin as legal tender in the Central American country. He also presented the regulatory progress and the benefits it brings to the Salvadoran economy.
Clarifies that the Superintendence of the Financial System of El Salvador, together with the Central Bank, are the main regulators of the Bitcoin industry, while the CNDA is governed by the legal framework that sets the foundations for the altcoin and stablecoin industry, the body that Authorizes the issuance and public offering of digital assets by the state and also by private companies.
In this sense, Reyes also provided details about the private company E-grains, which has been authorized to carry out the second tokenization in the country and is ready to enter the market. It is the $ESOY token, which represents the economic rights that come from trading a bushel of soybeans.
All of this is happening while Bitcoin adoption is quietly increasing in the country, seen in circular economies or citadels like Bitcoin Beach and Bitcoin Berlin, as well as the El Zonte Bitcoin Farmers Market, among other projects and communities.