- El Salvador erases all taxes related to innovation and technology.
- Last month, President Bukele signed a digital assets license.
- This would allow digital assets to open a $1 trillion market.
The forward-thinking nation of El Salvador has made a massive step towards becoming the most prominent crypto hub in the Americas.
President Nayib Bukele, the pro-Bitcoin millennial ruler of the small Latin American country, signed an unprecedented document allowing tech-related businesses to pay zero taxes. In further detail, the legal document called The Innovation and Technology Manufacturing Incentives Act will relieve the duty of these types of taxes:
- Capital gains
- Import tariffs
- AI programming
- Software programming
- Hardware manufacturing
Ultimately, this is seen as great news for the crypto industry. The most prominent crypto hub is currently Dubai, UAE, which operates in a similar legal framework. Naturally, the move by El Salvador was met with cheers and praises by the community on Crypto Twitter.
Crypto Lovers Flocking to El Salvador?
Developing a clear legal framework is crucial for a smooth transition from the legacy financial system to a Bitcoin-powered one. The El Salvadoran government has huge plans to attract institutional investors and young crypto talent and enable them to own a share of the country’s brave path to financial freedom.
For this cause, the Volcano bonds were created. Mr. Bukele recently signed a breakthrough bill allowing the issuing of Bitcoin-backed Volcano bonds. Previously, the launch was postponed, as the crypto markets were in extremely volatile conditions for most of 2022.
However, El Salvador’s Bitcoin journey took a positive turn once Bitcoin broke through $30,000, and the country quickly paid off the $800 million maturing bond. According to the latest statement by El Salvador’s Bitcoin partner Bitfinex, the wait is not long now – the highly-anticipated BTC Volcano bonds shall erupt this summer.
On The Flipside
- Nayib Bukele’s crypto portfolio is still $35 million down due to previous losses until May 2022.
- El Salvador’s BTC stash increased significantly after applying Dollar Cost Average (DCA) tactics.
Why You Should Care
El Salvador is a pioneering country in adopting Bitcoin as a legal tender.
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