El Salvador plans to create a ‘Bitcoin City’ and raise $1 billion via a ‘Bitcoin Bond’

- Advertisement -


  • El Salvador plans to build a “Bitcoin City” near the volcano that will be funded by cryptocurrency, the country’s President Nayib Bukele announced on Saturday.
  • The city will have residential and commercial areas, services, entertainment, restaurants and an airport.
  • El Salvador also plans to raise about $1 billion through “bitcoin bonds” in partnership with digital asset infrastructure firm Blockstream.

- Advertisement -

El Salvador plans to build a “Bitcoin City” near the volcano that will be funded by cryptocurrency, the country’s President Nayib Bukele announced on Saturday.

- Advertisement -

The city will have residential and commercial areas, services, entertainment, restaurants and an airport and will be built near the Conchagua Volcano in southeast El Salvador.

Construction will start in 2022 and the city will attract no tax except value added tax (VAT).

- Advertisement -

In June, El Salvador passed a law making it the first country in the world to accept bitcoin as legal tender. But its entire population is not with the move.

In September, thousands took to the streets to protest the law, fearing the introduction of cryptocurrencies could destabilize the Central American nation.

The country has also launched a bitcoin wallet to allow citizens to use cryptocurrencies.

Separately, El Salvador plans to raise about $1 billion through “bitcoin bonds” in partnership with Blockstream, a digital asset infrastructure company. The government said half the money would be used to buy bitcoin, while the other $500 million would go towards energy and bitcoin mining infrastructure.

Mining is the energy-intensive process of creating new bitcoins by solving cryptographic puzzles. El Salvador said it plans to use geothermal energy from the volcano to power it.

Blockstream’s chief strategy officer Samson Moe said the bond has a five-year lock-up, which is designed to take $500 million of bitcoin off the market for that period.

Investors in the bond will receive an annual special dividend, Blockstream said.

Bitcoin is down almost 16% from its all-time high of $68,990.90 reached earlier this month, but is still up over 90% this year.

,

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox