Tech Innovation Tax Removed by El Salvador to Boost Its Economic Growth
El Salvador has eliminated all taxes on technology innovations as it seeks to expedite technological development. The move comes after the country became the first to establish Bitcoin as a legal tender. The country’s president, Nayib Bukele, sees Bitcoin as a means to counter hyperinflation and reduce dependence on the US dollar. Bukele had promised to eliminate all income, property and capital gains taxes on technology innovations, and sent a bill to Congress on April 1. In addition, the National Bitcoin Office of El Salvador (ONBTC) was set up as a regulatory body. El Salvador aims to position itself as a technological and economic power in the world through these, and other initiatives, such as promoting tourism, countering terrorism and building business hubs in the region. The country has also passed legislation providing the legal framework for a Bitcoin-backed bond, known as the Volcano Bond, named after the location of Bitcoin City, which is set to become a renewable crypto-mining hub powered by energy from a nearby volcano.