Jul 31, 2019 18:40 UTC
Jul 31, 2019 at 18:40 UTC
Resignation Of Puerto Rican Governor Could Hamper The Island’s Cryptocurrency Future
The recent events, leading to Puerto Rican Governor, Ricardo Roselló’s resignation could put the future of the cryptocurrency in jeopardy in the region. The governor announced his resignation amidst immense political pressure following the release of leaked chat messages with a close circle of 11 politicians containing homophobic and sexist jokes, offensive comments about his political opponents and victims of Hurricane Maria. He will officially step down from office on August 2, 2019.
Rosselló became governor in 2016 and is the first chief executive to step down during a term since Puerto Ricans started electing their governors in 1947. In line with the constitution, Secretary of Justice Wanda Vazquez is expected to succeed him, until planned elections in 2020.
The island state has been facing a severe economic crisis in the last couple of years. It is currently under billions of dollars worth of debt. After Hurricane Maria wrecked the island in 2017, the economy and its people faced a bigger, more devastating impact.
Owing to lower tax rates and ease of access for US citizens, Puerto Rico caught the attention of many cryptocurrency entrepreneurs early on. These investors even offered to bring projects within the economy for its revival. Some even moved to Puerto Rico in the hopes of enjoying their cryptocurrency dreams. One such individual was Brock Pierce, a former child actor-turned-co founder of Block.One, a blockchain-based startup.
Rosello was clearly, a supporter of crypto. He has been known as a keynote speaker in many crypto conferences in the state and may have even mentioned cryptocurrency again just before his resignation
However, the cryptocurrency ecosystem on the island has not been officially recognized or regulated by the government yet. Rosello’s resignation presents a situation of uncertainty for many entrepreneurs like Pierce. Roselló’s resignation along with the Federal Oversight and Management board’s recent restructuring of the island’s $74 billion debt, points towards the end of the cryptocurrency utopia.