El Salvador to build Bitcoin’s first city and use $ 500 million of planned $ 1 billion bonds

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Salvadoran President Nayib Bukele has said his country will build a “Bitcoin City (CRYPTO: BTC)” based on the cryptocurrency apex.

The world’s first “Bitcoin City” will be located along the Gulf of Fonseca, near a volcano. The president said the government plans to find a power plant near the volcano to provide power both for the city and for bitcoin mining.

Bukele indicates that because the city would receive geothermal energy from the volcano, it would not levy any tax except for the value added tax (VAT).

The city, which will be located in the eastern region of La Union, will be a full-fledged metropolis with residential and commercial areas, restaurants, an airport, and port and rail service.

Also Read: El Salvador Builds 20 ‘Bitcoin Schools’ Using Profits From Crypto

Authorities predict that the city will be laid out in a circle (like a coin), and in the city center, a square will feature a large Bitcoin symbol.

El Salvador will issue the initial bonds in 2022, and the city’s public infrastructure is estimated at around 300,000 Bitcoins ($ 17.7 billion).

According to Bukele, the country plans to issue a billion dollar “bitcoin bond”. The bond would be a symbolic financial instrument developed by Blockstream.

The bond would be issued on the “liquid network”, a bitcoin sidechain network.

Bukele plans to propose a securities law and license Bitfinex Securities to process the issue, Blockstream said.

El Salvador in September became the first country in the world to adopt bitcoin as legal tender.

Also read: El Salvador starts mining bitcoin from volcanoes

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