This Saturday, El Salvador President Nayib Bukele has announced plans to build the world’s first “Bitcoin City”, funded by the cryptocurrency asset.
Salvadoran President, Nayib Bukele announced that his government will construct a “Bitcoin City” at the base of a volcano. He made the announcement in Mizata during LaBitConf, a week-long Bitcoin promotional event.
This comes less than three months since the Central American country became the first nation in the world to adopt Bitcoin as a legal tender. The new law requires that businesses accept the cryptocurrency as payment, alongside the US dollar, El Salvador’s official currency.
Bukele’s announcement was met with loud approval from the crowd at the event.
El Salvador’s Bitcoin City
The new city will be initially funded by Bitcoin, said Samson Mow, Blockstream’s chief strategy officer who spoke alongside the President. El Salvador will partner with the company to raise $1 billion in so-called “volcano bonds”.
According to the Salvadoran President, the “Bitcoin City” will be fully functional. It will include residential and commercial areas, bars and restaurants, an airport, and more.
It will assume a circular shape, presumably to mimic a coin.
Additionally, there will be no income, property, or municipal taxes charged on residents. Instead, the city will have a value-added tax. The Government plans to use this to fund the bonds as well as to build and maintain public infrastructure.
The new city’s proposed location at the base of the Conchagua volcano is a strategic one. According to Mow, it will provide the geothermal energy needed to power Bitcoin mining.
Nayib Bukele is a popular president, but his love for Bitcoin has led to some unrest in the country.