December 4, 2021

El Salvador builds the world's first bitcoin city

El Salvador builds the world's first bitcoin city

El Salvador plans to build the world's first "Bitcoin City", by raising funds from bitcoin bonds for $ 1 billion.

The city's development plan was unveiled by President Naib Bukele on November 20 at a Latin American conference on cryptocurrency and blockchain.

In his opinion, the new initiative will attract investment and make El Salvador the financial center of the world.

The city will be built in the form of a circle, and in the centerplan to erect a building in the shape of the bitcoin logo. Geothermal volcanic energy will provide energy resources for urban infrastructure, commercial housing, airport, transport and business. To attract investors, the business will be exempt from all taxes except value added tax (VAT).

"Invest freely in our bitcoin city and earn as much money as you want."

Half of the collected VAT will be used to pay off bonds issued for the city's construction, and the other half will be used to pay for municipal services, Bukele said.

The bonds will be issued on Blockstream's Liquid Network protocol, of $ 1 billion, $ 500 million is planned to be used to create a mining hub.

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