El Salvador To Build ‘Bitcoin City’ At The Base Of A Volcano

El Salvador To Build ‘Bitcoin City’ At The Base Of A Volcano
B&T Magazine
Edited by B&T Magazine

El Salvador’s president, Nayib Bukele (main photo), announced on Saturday night that his government will build an ocean-side ‘Bitcoin City’ at the base of a volcano.

The idea was presented by Bukele as he spoke to a crowd of Bitcoin enthusiasts while sporting his signature backwards baseball cap and a white button up shirt.

Bukele said the ‘Bitcoin City’ would be in the eastern region of La Union and would get geothermal power from Conchagua volcano.

The high amounts of energy needed for Bitcoin production would not be much of an issue with the volcano by the city’s side.

The only tax collected in the city will be value-added tax.

Half of the collected value added tax will be used to pay the municipal bonds and the rest will be for municipal infrastructure and maintenance.

A bond offering would occur in early 2022, entirely in bitcoin, and 60 days after financing was ready, construction would begin said Bukele.

“Invest here and make all the money you want,” Bukele said.

“This is a fully ecological city that works and is energized by a volcano.”

In preparation for the new city, the El Salvadorian government is running a pilot bitcoin mining venture at another geothermal power plant next to the Tecapa volcano.

To attract investors, the government will provide land, infrastructure, and work for people.

Burkele also said that there would be no property, income or municipal taxes and the city would have zero carbon dioxide emissions.

There would be residential areas, malls, and restaurants just like any other city and an emphasis on digital education, technology and sustainable public transportation.

He also expressed some more ‘utopian’ ideas for the city such as it being circular in design and featuring a plaza that looked like a bitcoin symbol from the air.

Bukele went on to liken the city to those founded by Alexander the Great.

“If you want bitcoin to spread over the world, we should build some Alexandrias.”

Speaking to the crowd as well was Samson Mow, chief strategy officer of blockchain technology provider Blockstream.

Mow told the crowd the first 10-year issue, called the ‘volcano bond,’ would be worth $1 billion USD, backed by bitcoin and carrying a coupon of 6.5%.

Half of the sum will go to buying Bitcoin on the market and other bonds would follow.

El Salvador plan to start selling some of the bitcoin after a five year lock-up to give investors an ‘additional coupon,’ according to Mow.

“This is going to make El Salvador the financial centre of the world,” said Mow.


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