Nayib Bukele – the president of El Salvador – has announced to the people of his country that the government is taking its bitcoin agenda to the next level. Regulators and city planners are looking to build a whole new village at the base of a volcano. The region will be known as “Bitcoin City” given that it will be entirely dependent on bitcoin and blockchain technology to thrive.
El Salvador Is Pushing BTC Even Further
He stated that a bond offering is going to occur in the year 2022. This offering will be entirely in bitcoin, and 60 days after financing is in place, construction on the new city is set to begin. The area will be built at the base of the Conchagua volcano so that it can have direct access to its thermal energy, which will be used to power the city and all the crypto mining systems the region is planning to utilize.
The government is already running a pilot program similar with this one in which a mining operation has been set up at the base of the Tecapa volcano, whereas Conchagua is based in southeast El Salvador on the Gulf of Fonseca. To attract investors, the government is willing to provide both land and infrastructure to anyone looking to set up bitcoin-based businesses near the volcano.
Another big clincher is that the city will operate on a virtually tax-free basis, with value tax set to be the only tax collected by regulators. This money will then be used to pay both municipal bonds and infrastructure maintenance. Other than this, operators can expect no property, municipal or income taxes, and the city is set to be carbon negative as a means of easing emissions.
To a cheering crowd in a packed arena, Bukele announced:
Invest here and earn all the money you want!
The city is looking to attract lots of foreign investment. Other than the many bitcoin projects set to be placed there, residents can look forward to several malls, restaurants, and other attractions that will be built along with the data mining centers. There will also be homes, public transportation, and digital education hubs for people to enjoy.
A Long and Illustrious Crypto History
El Salvador became the first country in the world to declare bitcoin legal tender. This occurred in early September, and individuals are tipping their hats to the country’s government given that it faced much opposition along the way. Several institutions – including the World Bank – criticized the country’s leaders and vowed not to assist in its digital currency agenda, citing bitcoin and virtual currencies as too volatile and dangerous to take seriously.
Many residents of El Salvador were gifted with $30 in bitcoin and have access to the country’s Chivo wallet system, which allows them to store, trade, and sell assets respectively.