Bitcoin City
El Salvador, the only country that recognizes Bitcoin as fiat currency, plans to build an entire city based on the largest cryptocurrency, Bitcoin, President Nayib Bukele said before a meeting of Bitcoin enthusiasts during the Bitcoin Week in El Salvador.
Highlights
El Salvador’s Bitcoin City raises funds by issuing US $ 1 billion worth of Bitcoin bonds. The city is near a volcano of the Gulf of Fonseca.
The Bukele government relies on Bitcoin to drive the country’s economic growth and investment, provided that Bitcoin prices are generally on the rise.
About the city
The Bitcoin City, planned by the President of El Salvador, will be arranged in a circle representing a coin and will also have a square in the city center that will be housing the giant Bitcoin symbol. Near Conchagua volcano, this city will be built, and will be using the country’s geothermal energy to power both cryptocurrency mining as well as the city. It is an energy consumption process that solves complicated mathematical calculations day and night, checks crypto coins, and the blockchain adds a network.
El Salvador already has a running pilot bitcoin mining centre beside the Tecapa volcano. Residents of Bitcoin City will not have to pay taxes on income, property, capital gains or payroll taxes. The city is built in consideration of attracting foreign investment. In addition, the city of Bitcoin has residential areas, shopping malls, restaurants and harbours and the country will have sustainable public transport and technology for digital education. In addition, only VAT will be charged, half of which will be used to settle municipal bonds and the rest will be used for local infrastructure and maintenance. There is no property tax, income tax, regional tax, and the city’s carbon dioxide emissions will be zero.
About Bitcoin Bonds
Bukele has introduced a $ 1 billion Bitcoin bond. Half of it will be used to build mining and energy infrastructure, and the rest will be used to buy more Bitcoin. The issuance of these bonds is managed by Blockstream, a company focused on Bitcoin services. Tokenized bonds will be available to many users around the world with a small amount of access starting at $ 100.
Dividends are only paid to bondholders through the tools provided by the Liquid network. Bitcoin Bond marks the beginning of capital market reforms based on Layer 2 technologies such as Bitcoin and Liquid Networks. This allows investment funds to flow smoothly from all over the world. With built-in encryption to maintain confidentiality, dividends can be distributed instantly to investors.