El Salvador, the first country in the world to adopt Bitcoin as legal tender, has decided to abolish all taxes on technological innovation. This move coincides with the establishment of the country’s National Bitcoin Office (ONBTC). This office is also referred to as “the Bitcoin Office”.
Nayib Bukele saw the largest cryptocurrency as a remedy against hyperinflation and dependence on the US dollar. Bitcoin was launched on September 7, 2021 as the country’s official currency. Over the past 18 months, El Salvador has restructured its Bitcoin investments — in many cases, the capital gains have been used to improve the country.
Bukele believes that eliminating certain tax requirements will accelerate technological development. On April 1, Bukele sent an officer The bill to congress. This bill outlines the plan to effectively eliminate all income, capital and capital gains taxes on technology innovations “such as software programming, coding, applications and AI development and manufacturing of computer and communications hardware”.
The creation of the Bitcoin Bureau supports these initiatives. The agency acts as a sort of overseer for joint initiatives by Bitcoin entrepreneurs and companies. According to the Asociación Bitcoin de El Salvador (Bitcoin Association of El Salvador), the ONBTC aims to “position the country as a technological and economic powerhouse in the world”.
In addition, Bukele tries to put El Salvador back on the map in various ways. For example, promoting tourism, fighting terrorism and building regional economic centers.
In early 2023, El Salvador passed legislation providing a framework for Bitcoin-backed bonds known as Volcano Bonds. This term is based on the location of Bitcoin City, which is expected to develop into a sustainable crypto mining hub. This hub is powered by hydrothermal energy from the nearby Conchagua volcano.
Source: Btc Direct
Barry Siefert is an accomplished journalist and author at The Nation View. He is known for his expertise in the field of cryptocurrency, and has written extensively on the topic. With a background in finance and economics, Barry has a deep understanding of the underlying technology and market forces that drive the crypto industry.
