Sun 21 November 2021:
El Salvador will build the world’s first bitcoin city, energized by a volcano, with residential, commercial and airport areas and initially financed by issuing bonds in the cryptocurrency market in 2022, President Nayib Bukele said on Saturday, doubling down on the Central American country’s bet on the crypto currency.
Speaking at an event to mark the close of a week to promote bitcoin in El Salvador, Bukele said the city planned in the east of the country would get its energy supply from a volcano and would not levy any taxes except for value added tax (VAT).
“We’ll start funding in 2022, the bonds will be available in 2022,” Bukele told a cheering crowd at the event.
“What will the ‘Bitcoin City’ include? It will be in the Gulf of Fonseca [Pacific Ocean, southeast]. And it will have everything: residential and commercial areas, services, museums, entertainment, bars, restaurants, airport, port, train, everything, “said Bukele in English, during the closing of Labitconf, an annual forum that brings together the world’s Bitcoiners.
Speaking alongside Bukele, Samson Mow, chief strategy officer of blockchain technology provider Blockstream, said El Salvador would initially issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city.
Bitcoin mining is the process by which new bitcoins are created using computers that solve complex mathematical problems, and whose operation requires a large amount of electrical energy. Currently, that energy comes from a geothermal plant built in 1999 and fed by the Tecapa volcano, in the city of Berlin, 112 km from San Salvador.
El Salvador in September became the first country in the world to adopt bitcoin as legal tender.
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