El Salvador is making bold moves towards a digital future and encouraging the growth of technologies and innovations. President Nayib Bukele recently signed the Innovation and Technology Manufacturing Incentives Act, which eliminates all income, property, capital gains, and import taxes on software creation, coding, artificial intelligence (AI), and other fields of digital progress. This fifteen-year exemption means new opportunities for startups, as well as established tech companies.

During a 103rd plenary session of the Legislative Assembly, Congresswoman Elisa Rosales stated that the government is working to build El Salvador into a leader in Latin America regarding technological manufacturing. Estuardo Rodriguez, a congressman, added that the new law will be beneficial to the country's economic growth, generating new jobs for the youth.

One of the most talked-about aspects of the act is the development of AI, a powerful tool that is already being used by many businesses. So far, the most significant accomplishment made by El Salvador in digital progress is the Bitcoin Law, which gives Bitcoin and other cryptos an established status as currency. As a result of this, cryptocurrency exchange Bitfinex became the first digital asset platform to acquire a license and extend their reach to El Salvador. It remains to be seen whether more exchanges will follow suit.

Overall, this move is set to generate a promising future for El Salvador, both economically and in terms of technological advancement. It is expected that with this new law, the country will experience a surge in investment, paving the way for a prosperous digital age.



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