El Salvador Plans to Create a Bitcoin City
El Salvador Plans to Create a Bitcoin City

The president of El Salvador said that the country plans to build the world's first bitcoin city with seed funding from crypto-backed bonds and has increased its bet on using cryptocurrencies to support investments in the Central American country.

He stated that the planned city to the east of La Union was drawing heat from the Conchagua volcano in southeastern El Salvador. Construction will start in 2022 and no taxes other than VAT will be charged.

"Invest here and earn as much money as you want," Njibokler said in English.

Bukele said that half of the value-added tax collected will be used to fund the bonds spent on city building and the other half on services such as garbage collection, and public infrastructure will cost about 300,000 Bitcoin. .

In September, El Salvador became the first country in the world to introduce Bitcoin as legal tender. Although Poker is a popular head. However, polls show that Salvadorans are skeptical about his love for cryptocurrency. The difficult start sparked protests against the government.

In September, thousands of people took to the streets to protest against the law, fearing that the introduction of cryptocurrency would cause instability in Central American countries. Although the country has also introduced a Bitcoin wallet to allow citizens to use the cryptocurrency.

Bukele compared his plan to the city built by Alexander the Great. The city will be circular, he said, consisting of the airport, residential areas and shopping areas, with a central square that looks like bitcoin from the air. symbolic.

They want to raise a billion dollars through bitcoin bonds

Bukele stated that El Salvador intends to issue its first bonds in 2022, noting that it will be issued within 60 days.

Samson Mao, chief strategist at Blockstream, a blockchain technology provider, said the first 10-year, $1 billion volcanic bond was backed by a 6.5% coupon of cryptocurrency.

He stated that half of the amount will be used to purchase cryptocurrencies in the market. With the emergence of other obligations. After five years of hoarding, El Salvador began selling cryptocurrencies that were used to fund bonds and offer additional coupons to investors.

In addition, bonds are issued over cellular networks. To facilitate this process, the Salvadoran government has enacted the Securities Act and the first license to operate the platform has been granted to Bitfinex.

In addition, 10 of these bonds will be issued at once. A $5 billion cryptocurrency has been pulled from the market for several years.

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