Over the weekend, El Salvador’s President Nayib Bukele announced the country plans to build a “Bitcoin City” near a volcano — completely funded by the cryptocurrency.
On Saturday night, Bukele brought together fellow Bitcoin enthusiasts to launch his latest idea — similar to what he did earlier this year at a Bitcoin conference in Miami to announce that El Salvador would be the first country to make the cryptocurrency legal tender.
The new “Bitcoin City” will include residential and commercial areas, services, entertainment, restaurants and an airport — all built near the Conchagua volcano in south eastern region of the country.
El Salvador’s government will provide the land and infrastructure in an effort to attract investors.
The city will be built near the volcano to take advantage of the geothermal energy to power the city and mine Bitcoin.
Mining Bitcoin is an energy-intensive solving of creating new Bitcoin by solving complex mathematical calculations day and night.
Additionally, the government plans to raise about $1 billion through a “Bitcoin Bond” in partnership with Blockstream, a digital assets infrastructure company.
The government says half of the funds will be used to buy Bitcoin and the other $500 million will go towards Bitcoin mining infrastructure.
The only tax collected will be the value-added tax — half will be used to pay the municipal bonds and the rest for municipal infrastructure and maintenance.
In June, El Salvador passed a law making it the first country in the world to accept Bitcoin as legal tender.
But not everyone has been supportive of the move.
In September, thousands of people took to the streets to protest the law — many fearing that the move to the cryptocurrency could lead to instability for the country.
Construction of the El Salvador’s “Bitcoin City” is set to begin in 2022.
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