A new law for Bitcoin – THE salvadorthe first country in the world to have adopted Bitcoin (BTC) as currency that is legal tender in its territory, pursues its cryptocurrency support policy. Salvadoran President Nayib Bukele has just signed a law, proposed to the congress a few weeks ago aimed at removing all taxes related to technological innovation, including for blockchain companies.
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El Salvador, new tax haven for crypto companies
This measure tax cut for FinTech companies taken by President Bukele follows the passage of the Bitcoin law in June 2021. Since then, the country has seen the emergence of a new cryptocurrency-based economy, with the installation of Bitcoin ATMs, the creation of a digital wallet called Chivo, as well as the construction of a volcanic energy powered Bitcoin mining center.
Mentioned for the first time on Twitter by the president himself in March, it was therefore rather natural for the head of state to announce the signature, and therefore the adoption on the same network:
“I just signed the INNOVATION AND TECHNOLOGY MANUFACTURING INCENTIVES ACT, which eliminates all taxes (income, property, capital gains and import duties) on technological innovations, software and application programming, AI , the manufacture of computer and communication equipment. »
Nayib Bukele – Source: Twitter
In details, the abolition of income taxownership, capital gains, and import rights for tech innovation companies, including blockchain ones, should strengthen El Salvador’s place as a pro-Bitcoin and pro-blockchain country.
In a context of delicate global economic crisis, faced with an economy in Latin America which is daily fighting inflation, and in a country, El Salvador, which has to fight its own social and political difficulties, the bitcoin adoption strategy led by President Bukele could allow El Salvador to stand out and play its cards right on the international scene. By removing taxes related to technological innovation, the country opens up to new opportunities and strengthens its leading position in the field of cryptocurrency. A bold decision that could well be followed by other countries on the South American continent.
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