El Salvador Plans to Build World’s First Bitcoin City
In this article (5)
El Salvador continues to position itself as a crypto hub leader with its latest plans to build a Bitcoin City with bonds backed by the same digital currency.
El Salvador President Nayib Bukele announced plans to build the world’s first Bitcoin City on Saturday as part of a week-long event to promote the South American nation as the hub of choice for cryptocurrency.
Invest here and make all the money you want, Bukele said. If you want bitcoin to spread over the world, we should build some Alexandrias.
El Salvador became the world’s first country to adopt bitcoin as legal tender in September.
According to the tech-savvy 40-year old, the city would be built in the eastern region of La Union and be powered by geothermal energy from a volcano.
Also, no taxes will be levied except for value-added tax of which half will be used to fund related bonds issued with the other half used to pay for services like garbage collection.
El Salvador plans to issue the bitcoin-backed bonds in 2022, Bukele added.
Questions & Answers
Q.Where is this new Bitcoin City planned to be built?
Where is this new Bitcoin City planned to be built?
The city is planned for the eastern region of La Union. It will be powered by geothermal energy, sourced from a nearby volcano, as stated by President Nayib Bukele.
Q.What kind of taxes will residents of Bitcoin City have to pay?
What kind of taxes will residents of Bitcoin City have to pay?
Residents will not pay most traditional taxes, but value-added tax (VAT) will be levied. Half of this VAT will fund related bonds, with the other half covering public services like waste disposal.
Q.When does El Salvador plan to issue the bitcoin-backed bonds?
When does El Salvador plan to issue the bitcoin-backed bonds?
El Salvador intends to issue these bitcoin-backed bonds in 2022. These bonds are a key part of the funding strategy for the new Bitcoin City project.
Q.What is the primary energy source for the planned city?
What is the primary energy source for the planned city?
The city is designed to be powered by geothermal energy. This energy will be specifically sourced from a volcano, according to the plans announced by President Nayib Bukele.
Reader pulse
Is El Salvador's Bitcoin City a viable model for future retail hubs?
20,586 votes so far