- This included the branches of AI, blockchain, computer technology, etc.
- So the country plans to become an outpost of innovation
El Salvador’s President Nayib Bukele has signed a law that will abolish all taxes on companies in the technology innovation sector. These are blockchain companies, developers of software and applications, AI technologies, manufacturers of computers and communication equipment.
The country is counting on the law to boost the technology sector, create new jobs and attract international investment.
Industry representatives comment positively on this news. Balaji Srinivasan, former CTO of Coinbase and partner at Andreessen Horowitz, tweeted:
“It is no longer about the first world and the third world. It is about the ascending world and the descending world. And under the guidance of Nayib Bukele, El Salvador entered the rising world.”
This law has become another brick in a series of efforts by the head of El Salvador to develop the country. So, in January, they created a legal framework for issuing bonds backed by bitcoins. This is a large-scale project of “volcano-bonds”. The authorities are attracting investors to build mining farms powered by volcanoes. They will be located in Bitcoin City, the new “city of the future.”
A couple of years ago, El Salvador declared BTC legal tender and has not changed this strategy since.
