“Completely ecological city”: first, El Salvador plans a “Bitcoin city”, World News

[ad_1]

As a first step, El Salvador plans to build the world’s first “Bitcoin City”. Initially, it will be funded by bitcoin-backed bonds, President Nayib Bukele said. Speaking at an event, Bukele said the city is planned in the eastern region of La Union and will get geothermal power from a volcano and will not levy any taxes except for the value added tax (VAT).

Half of the VAT levied would be used to finance the bonds issued to build the city. In addition, the other half would pay for services such as garbage collection.

“Invest here and earn all the money you want,” Bukele said. He added: “It is a fully ecological city that functions and is powered by a volcano.”

Read also | Who is Satoshi Nakamoto? True identity of bitcoin creator could be exposed in Florida lawsuit, report says

Samson Mow, chief strategy officer for blockchain technology provider Blockstream, told the gathering about the first 10-year issue, known as the “volcano bond.”

It said it would be worth $ 1 billion, backed by bitcoin and with a 6.5% coupon.

After a five-year block, El Salvador would start selling some of the bitcoin used to fund the bond. This will be done to give investors an “extra coupon”.

“This will make El Salvador the financial center of the world,” he said.

Meanwhile, a recent report in the Wall Street Journal indicates that the true identity of the creator of bitcoin can be revealed during an ongoing trial in Florida. The lawsuit filed by the family of the late David Kleiman claims it is Satoshi Nakamoto, the name used by the alleged pseudonym who developed bitcoin.

Despite falling over 4%, Bitcoin remains the world’s largest and best-known cryptocurrency.

(With contributions from agencies)

[ad_2]