A group of crypto-rich people have moved to Puerto Rico after selling their belongings in California to create a crypto utopia: Sol. Their plan to create a crypto-friendly city was developed after carefully analyzing different countries.
Cryptocurrencies have had a rough time in these past few months – China banned foreign cryptocurrency and ICO websites, Visa halted the use of prepaid cryptocurrency cards and various U.S. banks banned purchases made by Bitcoin credit cards. Additionally, Bitcoin’s price has dropped by almost 44% within the last month.
But so did Puerto Rico, with Hurricane Maria destroying the land and leaving people homeless and deprived of electricity. The impact of this natural disaster still remains, which is why these people chose Puerto Rico. They can literally build a city since the land has been flooded and previous structures have been wrecked. Halsey Minor, CNET founder, called this situation ‘the perfect storm’. “While it was really bad for the people of Puerto Rico, in the long term it’s a godsend if people look past that.”
But this act isn’t completely humanitarian. The island, a territory of the U.S., is tax free on personal income and capital gains. This is a golden opportunity for crypto users as the IRS has been looking for people who are not paying taxes on their Bitcoin holdings.
Apart from Minor, the group includes Lottery.com co-founder Matt Clemenson, the Bitcoin Foundation’s Director and Block.One co-founder Brock Pierce, Blockchain Industries CEO Bryan Larkin, and Tether co-founder Reeve Collins. They are already in talks with the local government to create a cryptocurrency bank for Sol. But they are not sure whether this utopia will be a city or will be a move into Puerto Rico’s capital, city San Juan.
Puerto Ricans have taken different sides on this new development – some believe that tax flexibility will lure people to the island and they will eventually empty their pockets to restore the land. Others believe that this is just another case of experimentation on their land, calling it a ‘tax playground for the rich’.