In El Salvador, Bitcoin City will stand, where taxes will not be levied

El Salvador, where Bitcoin is legal tender, is planning to build an entire city onthe basis of the largest cryptocurrency, President Nayib Bukele spoke about such plans during a presentation at Bitcoin Week.

"Bitcoin City" will be located on the shore of the bayFonseca near the volcano. According to the president, the government plans to place a power plant near the volcano, which will provide energy to both the city and the mining of bitcoins.

According to Bukele, Bitcoin City will be fully functionala metropolis with residential and commercial areas, restaurants, an airport, as well as a port and train station. The city will be located in a circle, in the center of which there will be a square on which a huge Bitcoin symbol will be placed. The city will have no income, property or capital gains taxes.

Bukele also said that El Salvador is planningto issue $ 1 billion worth of bitcoin bonds, a tokenized financial instrument developed by Blockstream on the Liquid Network. Of this amount, $ 500 million will be spent on building the necessary infrastructure for the production of energy and bitcoins, and $ 500 million will go to buy even more bitcoins.

Blockstream Strategy Director SamsonMoe said the $1 billion in tokenized bonds will be denominated in 10-year US dollars and will yield 6.5% interest. After a five-year lockup period, El Salvador will begin selling its cryptocurrency holdings and paying additional dividends to bondholders.

After 10 years, the annual percentagethe yield will be 146%, as the price of bitcoin is expected to reach $ 1 million over the next five years. By spending $ 500 million on buying bitcoins and blocking them for five years, El Salvador plans to help increase the price of BTC.

El Salvador will become the "Singapore of Latin America," said Samson Moe.

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