El Salvador has taken another historic step in its efforts to promote economic growth by eliminating all taxes on technology innovations. The move will apply to software programming, coding, apps and AI development, as well as computing and communications hardware manufacturing. This initiative runs parallel to the establishment of the National Bitcoin Office (ONBTC) of El Salvador, a regulatory body that aims to position the country as a technological and economic power in the world.

El Salvador President Nayib Bukele, who legalized Bitcoin as a legal tender in September 2021, sees the technology as a means to counter hyperinflation and dependence on the US dollar. Over the past 18 months, El Salvador has utilized capital gains from Bitcoin investments in numerous instances to rebuild the nation.

As part of Bukele’s ongoing efforts to reinvent El Salvador, the newly established Bitcoin office will conduct joint initiatives with Bitcoin entrepreneurs and companies. The ONBTC aims to support technological development by eliminating income, property, and capital gains taxes on technology innovations.

In addition to promoting tourism and building business hubs in the region, El Salvador has recently passed legislation providing the legal framework for a Bitcoin-backed bond known as the Volcano Bond. This renewable crypto-mining hub powered by hydrothermal energy from the nearby Conchagua volcano aims to bolster El Salvador’s economy and promote sustainable energy initiatives.