To Boost Its Economy, El Salvador Eliminates All Taxes on Technological Innovation

David - Cryptocurrency Enthusiast

Manufacturing of computing and communications devices as well as software programming, coding, apps, and artificial intelligence will not be subject to taxes in El Salvador.

El Salvador, the first nation to recognize trusted Bitcoin as tender, has made the decision to remove all taxes on technological advancements. In parallel, the National Bitcoin Office (ONBTC) of El Salvador, also referred to as "the Bitcoin office," is being established.

President Nayib Bukele of El Salvador saw the technology to combat hyperinflation and reliance on the US dollar when he legalised Bitcoin on September 7, 2021. El Salvador has reorganized its Bitcoin investment over the last 18 months and has used capital profits on numerous occasions to rebuild the country.

Bukele believes that reducing tax obligations would hasten technical advancement. As promised, Bukele delivered a measure to Congress on April 1 that would effectively do away with all income, property, and capital gains taxes on advancements in technology.

The Bitcoin office, a regulatory organization for carrying out cooperative efforts with Bitcoin entrepreneurs and companies, was established to support this ambition. The goal of ONBTC is to place El Salvador in the world as a technological and economic force.

Bukele's continued initiatives to remake El Salvador also include promoting tourism, fighting terrorism, and creating regional commercial hubs in addition to his attempt at a financial comeback.

At the start of 2023, El Salvador adopted legislation that set forth the guidelines for Volcano Bonds, bonds backed by Bitcoin.

The name "Volcano Bonds" refers to the area where Bitcoin City is situated, which is slated to develop into a center for renewable cryptocurrency mining fuelled by hydrothermal energy from the nearby Conchagua volcano.

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