Block announced that in Q4 2023, Cash App generated $66 million in Bitcoin gross profit up 90% year-over-year.
El Salvador has sliced all taxes on innovative technologies. The decision by the government of the crypto-friendly country comes at the same time as establishing a Bitcoin-specific office.
Bitcoin was established as legal tender in El Salvador in September of 2021, with President Nayib Bukele viewing cryptocurrency as a way to counter hyperinflation. To remove dependence on the US dollar and resolve issues of inflation, Bukele signed Bitcoin in as legal currency in the country and the government has been working to implement Bitcoin into investment and national finance. Part of this includes establishing a governmental office for the cryptocurrency. As a result, the government created the “Bitcoin Office”, or the National Bitcoin Office (ONBTC).
Ayer tuvimos una reunión muy especial con la @bitcoinofficesv
— Asociación Bitcoin de El Salvador (@asobitcoin) March 30, 2023
“Yesterday we had a very special meeting with the @bitcoinofficesv The companies of #Bitcoin and the regulators carry out joint initiatives to contribute even more to #ElSalvador As a member of @asobitcoin you will receive this and many more exclusive benefits!”
Bukele’s strategy with Bitcoin stands to resolve financial issues in the country and to establish El Salvador as a global hub to help promote innovation and tourism through digital currency adoption.
El Salvador as a Bitcoin friendly country
In addition to the office and Bitcoin as legal tender, Bukele and the government has eliminated taxes on technological development. This bill was put into place at the beginning of April. In the legislation all income, property and capital gains taxes on tech innovations and developments are cut. This includes “software programming, coding, apps and AI development, as well as computing and communications hardware manufacturing.”
Bukele announced the law’s introduction at the end of March, with a confirmation of the law’s implementation on the last day of March.
Next week, I’ll be sending a bill to congress to eliminate all taxes (income, property, capital gains and import tariffs) on technology innovations, such as software programming, coding, apps and AI development; as well as computing and communications hardware manufacturing.
— Nayib Bukele (@nayibbukele) March 24, 2023