El Salvador plans to create a complete city based on Bitcoin

The government of El Salvador is stepping up efforts Behind Bitcoin. Coindesk with BBC News report President Nayib Bukele Unveil It is planned to build a “Bitcoin City” near a volcano near Fonseca Bay between La Unión and Conchagua. The metropolis will have its own geothermal power plant to help support cryptocurrency mining, and will not levy capital gains tax, income tax, payroll tax or property tax, only value-added tax.

The city will be shaped into a coin. Although it should include all the amenities you expect from a city, the people of La Unión can go to work on new developments.

Bukele did not provide a timetable for city creation. However, he also launched a $1 billion US “Bitcoin Bond”, half of which will be used to build energy and mining infrastructure, and the rest will be used to purchase more digital currencies. Samson Mow, director of strategy at bond developer Blockstream, said that El Salvador will start selling crypto assets in five years and pay additional dividends to bondholders. If all goes well, the initial yield is 6.5%, which may be a big windfall for the country.

This is a huge gamble for a company with a GDP of slightly more than 24.6 billion U.S. dollars in 2020. The Booker government is counting on Bitcoin to stimulate economic growth, independence and investment, but it also assumes that the form of currency is still on an upward trajectory. It is unclear whether future residents and investors will flock to Bitcoin even with tax incentives. A currency-oriented city. This is a new field of cryptocurrency, and it is uncertain whether there is enough support to help the project flourish.

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