El Salvador to Build Bitcoin City

Story Highlights
  • President Nayib Bukele announced the landmark project at Latin American Bitcoin and Blockchain Conference.
  • Bitcoin City- to be an eco-friendly build.
  • El Salvador was the first country globally to recognise Bitcoin

El Salvador plans to build the world’s first “Bitcoin City”, funded initially by cryptobonds , President Nayib Bukele said at the Latin American Bitcoin and Blockchain Conference on Saturday.The country was the first globally to legalise the existence of crypto. The city at the base of the Conchagua volcano would power mining industry in the country.

Expressing his likeness to cities created by Alexander the Great, Bukele stated Bitcoin City would be circular, with an airport, residential and commercial areas, and tailor made complex designed to look like a bitcoin symbol from the sky. The prez plans to power the city in the eastern region of La Union initially by geothermal power from Tecapa plant until his government builds a new geothermal plant powered by Conchagua. Plus the residents would be free from taxes on payroll, property and income. The administration would use VAT returns to fund the bonds issued to build the city, and pay fee for services such as garbage collection. The country aims to set up ‘Zero Co2 emissions’ city. However, no timeline was given for Bitcoin City’s construction.

El Salvador recognized Bitcoin as a legal tender in September. Samson Mow, chief strategy officer of Blockstream, told the gathering the first 10-year issue, known as the “volcano bond”, would be worth $1 billion, backed by bitcoin and carrying a coupon of 6.5 per cent. Half of the sum would go to buying bitcoin on the market, he said. This decision by the Prez is going to make El Salvador the financial center of the world, claims Mr Mow. The govt is currently working on a securities law, and the first license to operate an exchange.

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