How President Bukele wants to make 'Bitcoin City' a reality
El Salvador is the only country that has recognized Bitcoin as legal tender. Now, the country has unveiled an ambitious plan to build an entire city around cryptocurrency. Addressing the attendees of Bitcoin Week in the country last week, President Nayib Bukele has announced El Salvador's Bitcoin City, near a volcano, would be funded by a $1 billion Bitcoin bond. Here are more details.
Why does it matter?
- El Salvador is the first and only country to accept Bitcoin as a legal currency, alongside the US dollar.
- The Central American country's administration has high hopes that the infusion of cryptocurrency will boost its economic growth and encourage investment, provided Bitcoin's value continues to soar.
- Bitcoin City will rely on thermal power and include malls, residential areas, restaurants, and a port, Bukele said.
Replete with modern amenities, city will attract investment
The Bitcoin City will be reportedly constructed near the Conchagua volcano in the Gulf of Fonseca so geothermal power can be utilized for Bitcoin mining. The city has been planned in a circle (looking like a coin) with a plaza in the center that will resemble a Bitcoin symbol. The city will have access to "digital education, technology, and sustainable public transportation," Bukele added.
'Invest here and earn all the money you want': Bukele
The city is welcoming investment from around the world and Bukele claimed that residents of Bitcoin City will not need to pay taxes for income, property, capital gains, and even payroll. Only value-added tax will be collected and half of it will be used to pay the municipal bonds while the other half will be used to pay for municipal infrastructure and maintenance.
Bitcoin City construction estimated to cost 300,000 BTC
Bukele also said Bitcoin City "would have zero carbon dioxide emissions." The president did not detail a timeline for the creation of the "fully ecological city that works and is energized by a volcano." However, Bukele estimated public development works would cost around 300,000 Bitcoins. The Bitcoin bond will be offered in 2022 and construction will commence 60 days after the financing is ready.