- Salvadoran President Nayib Bukele legitimized Bitcoin on September 7, 2021.
- This action is being taken in tandem with the launch of the National Bitcoin Office.
Being the first government to recognize Bitcoin as legal cash, El Salvador has made the bold move of abolishing all taxes on technological advancements. This action is being taken in tandem with the launch of El Salvador’s National Bitcoin Office (ONBTC), or “the Bitcoin office.”
To combat hyperinflation and reliance on the U.S. currency, Salvadoran President Nayib Bukele legitimized Bitcoin on September 7, 2021. El Salvador has used Bitcoin investing strategy and cash gains on multiple occasions over the last 18 months to rebuild the country.
Pushing Technological Progress
Bukele, who was pushing this idea forward, thought that reducing tax requirements would hasten technical progress. Bukele delivered on his April 1st pledge by submitting legislation to Congress that would eliminate all income, property, and capital gains taxes on technological advancements such as “software programming, coding, apps and AI development, as well as computing and communications hardware manufacturing.”
The Bitcoin office, a regulatory organization for collaborating on projects with Bitcoin entrepreneurs and businesses, has been set up to help with this effort. The mission of ONBTC is to “position the country in the world as a technological and economic power,” as stated by the Bitcoin Association of El Salvador (Asociación Bitcoin de El Salvador).
Bukele’s continued attempts to rebuild El Salvador include marketing the country as a tourist destination, fighting terrorism, and creating regional centers for commerce.
Volcano Bonds, secured by Bitcoin, were made lawful in El Salvador around the start of this year. Bitcoin City is going to be a sustainable crypto-mining center, fueled by hydrothermal energy from the nearby Conchagua volcano, therefore the Volcano Bonds name comes from that.