El Salvador to Maintain Bitcoin as Legal Tender
El Salvador's Vice President Felix Ulloa confirmed that bitcoin will continue to be recognized as legal tender in the country even if President Nayib Bukele gets reelected. This decision comes despite the International Monetary Fund (IMF) urging El Salvador to abandon the use of cryptocurrency as legal tender during negotiations for a billion-dollar loan.
Ulloa emphasized that the reelection of Bukele would solidify the country's commitment to Bitcoin and initiatives like the upcoming launch of volcano bonds in the first quarter of 2024. He stated:
"The law declaring bitcoin as legal tender will not only be maintained but also enjoys immense credibility worldwide."
With the recent launch of Bitfinex as a digital securities tokenization company in El Salvador, the country's digital future is gaining more trust and attracting increased demand for cryptocurrency-based products.
President Javier Milei Drops Crypto Tax Opportunities From Omnibus Bill
The Argentine government has removed the provisions related to declaring ownership of assets, including cryptocurrencies, from the omnibus bill presented to Congress. The bill, known as the "Law of Bases and Starting Points for the Freedom of Argentines," aims to bring about reforms in various areas and grant President Javier Milei legislative powers.
The government decided to withdraw these provisions to expedite the approval of the bill, as there was no consensus on the issues that were removed. Guillermo Francos, the Minister of Interior, explained:
"The proposal aims to promote economic development and freedom. It was crucial to remove these provisions quickly. The tax aspect was relatively minor and required further consideration."
Venezuela Hit by Reenactment of Gold Sanctions
The U.S. Treasury Office of Foreign Assets Control (OFAC) has revoked the license that permitted CVG Compania General de Mineria de Venezuela CA (Minerven), the state-owned gold company, to engage in gold transactions in international markets. In October, the U.S. initially lifted sanctions on Minerven after reaching an agreement with Maduro's government to review the participation of key opposition figures in the upcoming presidential election.
Furthermore, the U.S. State Department warned that additional sanctions related to oil and gas would be reinstated if the Venezuelan government failed to address the participation issue by April. Jorge Rodriguez, the president of the National Assembly, defiantly responded to National Security Council spokesperson John Kirby, saying:
"Save your ultimatum, sh*t Yankees. Kirby, shove your ultimatum where it fits you best."
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Frequently Asked Questions
How can I withdraw from a Precious metal IRA?
First, determine if you would like to withdraw money directly from an IRA. After that, you need to decide if you want to withdraw funds from an IRA account. Next, make sure you have enough money in order for you pay any fees or penalties.
You should open a taxable brokerage account if you're willing to pay a penalty if you withdraw early. This option is also available if you are willing to pay taxes on the amount you withdraw.
Next, determine how much money you plan to withdraw from your IRA. This calculation is affected by many factors, such as the age at which you withdraw the money, the amount of time the account has been owned, and whether your plans to continue contributing to your retirement fund.
Once you know how much of your total savings to convert to cash, it's time to choose the type of IRA that you want. Traditional IRAs allow for you to withdraw funds without tax when you turn 59 1/2. Roth IRAs, on the other hand, charge income taxes upfront but you can access your earnings later and pay no additional taxes.
Finally, you'll need to open a brokerage account once these calculations are completed. Most brokers offer free signup bonuses and other promotions to entice people to open accounts. To avoid unnecessary fees, however, try opening an account using a debit card rather than a credit card.
When it comes time to withdraw your precious metal IRA funds, you will need a safe location where you can keep your coins. Some storage facilities can accept bullion bar, while others require you buy individual coins. Before choosing one, consider the pros and disadvantages of each.
Because you don't have to store individual coins, bullion bars take up less space than other items. But you will have to count each coin separately. On the flip side, storing individual coins allows you to easily track their value.
Some people prefer to keep coins safe in a vault. Others prefer to store them in a safe deposit box. Whatever method you choose to store your bullion, you should ensure it is safe and secure so you can enjoy its many benefits for many years.
Can the government steal your gold?
Because you have it, the government can't take it. It's yours, and you earned it by working hard. It belongs entirely to you. However, there may be some exceptions to this rule. If you are convicted of fraud against the federal government, your gold can be forfeit. Also, if you owe taxes to the IRS, you can lose your precious metals. You can keep your gold even if your taxes are not paid.
Should You Buy Gold?
Gold was once considered an investment safe haven during times of economic crisis. Many people are shifting away from traditional investments like bonds or stocks to instead look toward precious metals such gold.
The gold price has been in an upward trend for the past few years, but it remains relatively low compared with other commodities like silver or oil.
Some experts think that this could change in the near future. They believe gold prices could increase dramatically if there is another global financial crises.
They also noted that gold is growing in popularity because of its perceived value as well as potential return.
These are some important things to remember if your goal is to invest in gold.
- Consider whether you will actually need the money that you are saving for retirement. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- You should also be aware of what you are getting into before you buy gold. There are many types of gold IRA accounts. Each offers varying levels of flexibility and security.
- Don't forget that gold does not offer the same safety level as a bank accounts. Losing your gold coins could result in you never being able to retrieve them.
You should do your research before buying gold. You should also ensure that you do everything you can to protect your gold.
Statistics
- If you accidentally make an improper transaction, the IRS will disallow it and count it as a withdrawal, so you would owe income tax on the item's value and, if you are younger than 59 ½, an additional 10% early withdrawal penalty. (forbes.com)
- This is a 15% margin that has shown no stable direction of growth but fluctuates seemingly at random. (smartasset.com)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Instead, the economy improved, stocks rebounded, and gold plunged, losing 28 percent of its value in 2013. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
External Links
cftc.gov
- Fraud Advisory: Precious Metals Fraud
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By: Sergio Goschenko
Title: Latam Insights: El Salvador to Maintain Bitcoin as Legal Tender, Milei Drops Crypto Tax Opportunities, and Venezuela Hit by Gold Sanctions
Sourced From: news.bitcoin.com/latam-insights-el-salvador-reinforces-its-bitcoin-allegiance-milei-drops-crypto-from-omnibus-bill/
Published Date: Mon, 05 Feb 2024 00:30:55 +0000
