El Salvador has once again made headlines after its president, Nayib Bukele, announced that the country will be building a crypto-powered city, dubbed Bitcoin City, at the base of a volcano.
Announcing the new project during El Salvador’s Bitcoin Week conference, President Bukele noted that the Bitcoin City project will be funded initially by $1 billion bitcoin bonds.
El Salvador’s Bitcoin City Project
Giving snippets of the Bitcoin City project, President Bukele revealed that the city will be built in the eastern region of La Unión near the Conchagua volcano.
The project will obtain geothermal energy from the volcano to power both the city and bitcoin mining activities, fostering zero carbon emissions.
He added that there will be no property, municipal, or income taxes levied on the residents apart from value-added tax (VAT).
President Bukele added that Bitcoin city would be built to attract foreign investors as it would have malls, restaurants, residential and commercial areas, an airport, and a central plaza that should look like the bitcoin logo from the air.
“Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano.”
El Salvador to Raise $1 Billion Bitcoin Bonds
The Bitcoin City project will see active participation of some top cryptocurrency companies, including Blockstream and Bitfinex.
El Salvador will be issuing a $1 billion “Bitcoin Bond” via the Liquid Network, which will be split equally between the construction of Bitcoin City and adding more BTC to the country’s purse.
A statement from Blockstream reads,
“The $1 billion US raised will be split between a $500M allocation of bitcoin (BTC) and a $500M infrastructure spend for building out energy and Bitcoin mining infrastructure in the region.”
El Salvador also intends to create a government securities law and award a license to Bitfinex Securities to process the bond issuance.
The central American nation is showing no sign of ever stopping on its bitcoin venture. In addition to building the Bitcoin City, El Salvador will also buy $500 million worth of bitcoin.
Following its bitcoin adoption decision, El Salvador has been making headlines after headlines. And now, it is set to build the first bitcoin-powered city in the world.
Your crypto deserves the best security. Get a Ledger hardware wallet for just $79!