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El Salvador plans the 1st “Bitcoin City”, fueled by volcanoes


El Salvador – the first country in the world to adopt Bitcoin as legal tender in September – plans to build the world’s first “Bitcoin City”, an entire city that will be funded by Bitcoin bonds and powered by geothermal energy from one of the many volcanoes in the country. , according to The official Twitter page for the Presidency of El Salvador.

Fast facts

  • Speaking at a week-long event promoting Bitcoin in the country, President Nayib Bukele said the oceanfront city will help fuel investment in El Salvador and will include an airport, areas residential and communal areas with a central plaza designed to resemble the Bitcoin symbol from the sky.
  • “Invest here and earn all the money you want,” Bukele said, comparing the plan to the cities founded by Alexander the Great. “If you want Bitcoin to spread around the world, we should build Alexandria. »Bukele caused controversy recently, when he apparently jokingly called himself El Salvador’s “dictator” on Twitter. Regardless, the blow has not been well received in the country where there is growing discontent with Bukele’s apparent consolidation of political power.
  • The city is valued at 300,000 BTC (the equivalent of $ 17.224 billion, according to CoinMarketCap) and the initial bonds are expected to be issued in 2022 in about 60 days. The city would not levy any tax other than value added tax; half of the money collected would be used to finance bonds used to build the city, and the other half would go to pay for services such as garbage collection.
  • Also speaking at the event, chief strategy officer for blockchain technology provider Blockstream, Samson Mow, explained that the first issue in 10 years would be worth $ 1 billion, backed by Bitcoin and carrying a coupon of 6.5%. Half of the sum of the bonds, known as the “Volcanic Bond”, will go towards buying Bitcoin in the market, other bonds will follow. El Salvador is currently working on a securities law to enable this process and the first license to operate an exchange is expected to go to Bitfinex.
  • “This is going to make El Salvador the financial center of the world,” Mow said at the event.
  • Forkast.News spoke with Mow shortly after El Salvador approved Bitcoin as legal tender in July, where he said he expected Bitcoin adoption to continue in El Salvador and beyond . “I think Bitcoin will be just money in the future, and to get there it’s going to gobble up all fiat currencies – bonds, gold, everything like that. So it’s just going to become money and it’s going to be ubiquitous, he said.