Puerto Rico Bets on Cannabis and Cryptocurrencies for Economic Recovery
In the last years Puerto Rico has experienced important economic problems. It started with an economic recession followed by the Hurricane Maria. However, Governor Ricardo Roselló wants to invest in cryptocurrency technology and medical marijuana.
The main intention behind this initiative is to get some financial respite for the territory. He will be developing a venture capital portfolio with risky investments that could potentially transform the local economic scenario.
The cryptocurrency billionaire Brock Pierce is also trying to bring blockchain technology to the island. Although the island is experiencing a financial crisis, companies that move to it can get a tax break and pay just 4% of corporate tax and nothing on passive income.
It seems that Puerto Rico is trying to become a Crypto Silicon Valley. Several crypto related companies and startups have settled their businesses in the island. Additionally, blockchain technology could be used to revolutionize the infrastructure of the country.
Different countries are attracted by the idea of using virtual currencies to help the economy. For example, Venezuela has decided to introduce the Petro, a virtual currency that is backed by the nation’s oil reserves.
According to President Nicolás Maduro it would be possible to stop inflation and improve the country’s financial infrastructure.
Furthermore, Governor Roselló will also be investing in Medical marijuana and not just in cryptocurrencies. The medicine has been legalized in the territory from 2015 and it’s available through medical dispensaries since 2017.
Pueto Rico is testing a new way to deal with an economic crisis. Purchasing virtual currencies or allowing companies to enter the island could be good options to rebuild the country. It is just a matter of time to see the effect that these decision will have in the overall economy and in the population.