Puerto Rico wants to use blockchain technology to fight corruption

Puerto Rico wants to use blockchain technology to fight corruption

Puerto Rico House Speaker Rafael "Tatito" Hernandez said he will meet with members of Puerto Rico's growing blockchain industry to discuss creating smart contracts in order to reduce rampant corruption in the country.

The President said these meetings are part of a larger plan to make the island a hub for blockchain and cryptocurrency-based innovation. The island's tax incentives attract thousands of new Puerto Rico residents. There is no capital gains tax even on those related to cryptocurrencies.

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Although the island is part of the United States, it is exempt from mainland tax codes and it has no capital gains tax. It is the only place on US soil where there are no taxes on income, dividends and investment interests. Other nations have low or no taxes at all, such as El Salvador which directly appeals to the bitcoin community, but only Puerto Rico offers residents an easier way to retain US citizenship.

The Department for Economic Development states that requests for tax breaks have tripled in recent years. In 2021, more than 1,000 people were approved for the benefits. This broke the previous record set in 2018. Hernandez said: "This is a new niche, a new opportunity to create jobs." He added that blockchain and the cryptocurrency industry could be a way for the bankrupt commonwealth to revive its economy.

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