- This includes the industries of AI, blockchain, computer technology, etc.
- This is how the country plans to become an outpost of innovation
El Salvadoran President Naib Buquele has signed a law that eliminates all taxes on companies from the technological innovation sector.
These are blockchain companies, developers of software and applications, AI technologies, and manufacturers of computers and communications equipment.
The country expects the law to boost the tech sector, create new jobs and attract international investment.
People in industry commented positively on such news. Here’s what Balaji Srinivasan, former Coinbase CTO and partner at Andreessen Horowitz, tweeted:
“It’s no longer about first world and third world. It’s about an ascending world and a descending world.
And under the leadership of Nayib Bukele, Salvador entered the rising world.”
This law was another brick in the El Salvadoran leader’s succession of efforts to develop the country.
For example, in January they created a legal framework for issuing bonds backed by bitcoins. This is a large-scale “volcano-bond” project.
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.”
El Salvador declared BTC a legal tender a couple of years ago and has not changed that strategy since.