El Salvador, the first country to establish Bitcoin (BTC) as legal tender, he made another historic decision to eliminate all taxes on technological innovations. The move parallels the establishment of El Salvador's National Bitcoin Office (ONBTC), also known as the Bitcoin office.
When legalizing Bitcoin on September 7, 2021El Salvador President Nayib Bukele he saw technology as a means to counter hyperinflation and reliance on the US dollar. In the last 18 months, El Salvador restrategized Bitcoin investments and capital gains used in numerous cases to rebuild the nation.
Advancing this strategy, Bukele believed in reducing tax requirements as a means to speed up technological development. As he promised, on April 1, Bukele officially sent a bill to Congress: effectively eliminate all income, property, and capital gains taxes on technological innovations โsuch as software programming, coding, applications, and AI development; as well as the manufacture of computing and communications hardwareโ.
Supporting this initiative is the establishment of the Bitcoin office, a regulatory body to carry out joint initiatives with Bitcoin entrepreneurs and companies. According to the Bitcoin Association of El Salvador, the ONBTC aims to "position the country in the world as a technological and economic power."
Yesterday we had a very special meeting with the @bitcoinofficesv
The companies of #Bitcoin and regulators carry out joint initiatives to contribute even more to #The Savior
As a member of @asobitcoin you will receive this and many more exclusive benefits! pic.twitter.com/OFgzpO4GA6
โ Bitcoin Association of El Salvador (@asobitcoin) March 30, 2023
In addition to attempting a financial recovery, Bukele's ongoing efforts to reinvent El Salvador include promoting tourismthe fight against terrorism and build business centers in the region.
Related: El Salvador's Bitcoin Strategy Evolved With The Bear Market In 2022
In early 2023, El Salvador passed a law that provides the legal framework for a Bitcoin-backed bond - known as the Volcano Link.
#Plenary90โ With 62 votes in favor, we created the Digital Assets Issuance Law. pic.twitter.com/g1poXwLoH3
โ Legislative Assembly (@AsambleaSV) January 11, 2023
The volcano bond nomenclature is derived from the location of Bitcoin City, which is set to become a center for renewable crypto mining powered by hydrothermal energy from the nearby Conchagua volcano.
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