El Salvador is doubling down on its efforts to become a leader in the technology and cryptocurrency space. President Nayib Bukele has announced a new plan to waive taxes on software programming, coding, apps, artificial intelligence (AI) development, and computing and communications hardware manufacturing in a bid to spur technology innovation and attract more tech companies and startups to the country.
“This move is part of our vision to position El Salvador as a cryptocurrency hub and to create a thriving tech ecosystem that will contribute to the country’s economic growth,” said Bukele. “By providing incentives for innovation and development, we hope to attract the best minds in the technology industry to our country.”
This announcement comes two years after El Salvador became the first country in the world to make Bitcoin legal tender, a move that has been met with mixed reactions. However, Bukele has remained steadfast in his defense of the decision, stating that it is a way to provide financial inclusion for the unbanked population and to promote economic growth in the country.
In addition to waiving taxes on technology innovations, El Salvador has also recently approved a law for the issuance of bonds backed by Bitcoin. The Volcano Bond is named after the country’s active volcanoes, which will provide the renewable energy needed to power the Bitcoin mining industry that the bond is designed to support.
“The issuance of the Volcano Bond is a significant milestone in our efforts to create a sustainable Bitcoin mining industry in El Salvador,” said Bukele. “We are committed to promoting renewable energy and using our natural resources to power our economy.”
The move to waive taxes on technology innovations and support the development of a Bitcoin mining industry is expected to position El Salvador as a leader in the crypto space and attract more investment to the country. With these bold moves, it seems that El Salvador is well on its way to becoming a major player in the world of technology and finance.