Nayib Bukele to Make El Salvador New Crypto Hub, Binance CEO Joins

El Salvador’s President Nayib Bukele announced plans to introduce a bill to the nation’s congress next week that aims to eliminate all taxes on technology innovations. The bill will target income, property, capital gains and import tariffs associated with software programming, coding, apps, artificial intelligence development, and computing and communications hardware manufacturing.

Bukele’s move to create a more tech-friendly environment is expected to attract more international investments and stimulate the country’s growing technology sector.

In response to Bukele’s announcement, Binance CEO Changpeng Zhao expressed his support for the initiative, highlighting that the cryptocurrency exchange had already established a Customer Support Center in El Salvador last year, employing around 60 staff members. Zhao stated, “Let’s do more!” indicating the company’s intention to expand its operations in the country, taking advantage of the tax incentives proposed by the bill.

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

El Salvador has been actively embracing technology and digital assets, most notably becoming the first country to adopt Bitcoin as legal tender in September 2021.

Despite the ambitious move, the nation’s Bitcoin investment has not yet paid off, with its portfolio value still down 34%, standing at $73 million, a decrease of nearly $38 million. The volatile nature of the cryptocurrency market has contributed to this decline, but Bukele remains committed to promoting and investing in technology and digital assets as a means to boost the economy and drive development in the country.

The proposed tax elimination bill is expected to create a more business-friendly environment for technology companies, attracting more international investments and fostering innovation in various tech sectors. This could potentially lead to job creation and economic growth, as well as place El Salvador at the forefront of technological advancement in the region.