El Salvador to build world’s first ‘Bitcoin City’ to be powered by volcanoes, funded initially by bitcoin-backed bonds
El Salvador — the first country in the world to adopt Bitcoin as legal tender in September — plans on building the world’s first “Bitcoin City,
The city planned in the eastern region of La Union would get geothermal power from a volcano and not levy any taxes except for value added tax
President Nayib said the city will help fuel investment in El Salvador and will feature an airport, residential and commons areas with a central plaza designed as bitcoin
The city is estimated to cost 300,000 BTC (the equivalent of US$17.224 billion, according to CoinMarketCap) with the initial bonds expected to be issued in 2022 in roughly 60 day
The city would not levy tax aside from VAT; half of the money raised would be used to fund the bonds to build the city, and the other half would be used to pay for services such as garbage collection.
Although Mr Bukele is a popular president, opinion polls show Salvadorans are skeptical about his love of bitcoin, and its bumpy introduction has fuelled protests against the government.
To facilitate the process, El Salvador's government is working on a securities law, and the first license to operate an exchange would go to Bitfinex