El Salvador plans to build a Bitcoin city

The President of El Salvador, who sparked great controversy over the decisions he made about Bitcoin last year Nayib BukeleIt doesn’t seem like it will stop. The President is trying to prove how serious he is by announcing his new plans to the whole world.

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Bitcoin city will be built near a volcano

President of El Salvador Nayib Bukeleannounced their plans to build a “Bitcoin City” near a volcano along Fonseca Bay between La Union and Conchagua. This city will have its own geothermal power plant to support crypto mining and there will be no capital gains, income, payroll or property taxes. There will be only value added tax.

It is stated that the design of the city will be in the form of coins and will include all the amenities you would expect from a city. People at La Union will be able to travel to work in the new city. Mayor Bukele did not offer a timeline or roadmap for building the city. However, the president 1 billion dollars The USA announced the “Bitcoin bond”. Half of the money will be used to build energy and mining infrastructure. It was announced that with the rest of the money, more cryptocurrencies will be bought.

bond developer blockstreamhead of strategy Samson MowHe stated that El Salvador will start selling crypto assets after five years and will pay extra dividends to bondholders.

This move 2020gross domestic product in 24.6 billion dollars It’s a big gamble for a country like El Salvador, which is just over the top. Another Bukele’s management is economic to grow, independence and investment to encourage bitcoin‘to trusts.

It’s also unclear whether residents and investors will flock to a Bitcoin-focused city, even with tax incentives. Creating a new territory for the cryptocurrency is difficult, and it is not yet certain whether there will be enough support to help the project develop.

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