At the beginning of 2023, El Salvador established a legal framework for issuing Bitcoin-backed bonds inspired by the Bitcoin City, known as Volcano Bonds
El Salvador made history by becoming the first country to declare Bitcoin as a legal tender. Now, in addition, the government has decided to remove all taxes on technology innovations, which aligns with the establishment of the National Bitcoin Office (ONBTC), also known as “the Bitcoin office.”
President Nayib Bukele viewed the adoption of Bitcoin as a way to combat hyperinflation and lessen dependence on the US dollar. The country has used the profits from Bitcoin investments to rebuild its economy over the past 18 months.President Bukele is continuing his strategy of promoting technological development by reducing tax requirements. On April 1st, he followed through on his promise by introducing a bill to Congress that would eliminate income, property, and capital gains taxes on technology innovations.
This includes areas such as software programming, coding, apps and AI development, as well as the manufacturing of computing and communications hardware.The creation of the Bitcoin office in El Salvador has provided a regulatory framework for collaborating with Bitcoin entrepreneurs and businesses. The aim of the National Bitcoin Office (ONBTC), as stated by the Bitcoin Association of El Salvador, is to position the country as a technological and economic powerhouse on the world stage.
This initiative is intended to support the country’s technological growth and development in the long run.Apart from seeking to revive the country’s economy, President Bukele is making ongoing attempts to transform El Salvador by promoting tourism, combating terrorism, and establishing regional business centres.At the beginning of 2023, El Salvador established a legal framework for issuing Bitcoin-backed bonds, known as Volcano Bonds. The name is inspired by the location of Bitcoin City, which is situated near the Conchagua volcano and is being developed as a sustainable crypto-mining centre. The energy required for mining will be sourced from hydrothermal power generated by the volcano.
Source: Forbes India
