LA LIBERTAD, El Salvador (Associated Press)-In the atmosphere of a rock concert, El Salvador’s President Naib Bukler announced that his government will build a seaside “Bitcoin City” at the bottom of the volcano.
Bukele used a gathering of Bitcoin enthusiasts to publish his latest ideas on Saturday night, just as he used the earlier Bitcoin conference in Miami to announce in a video message that El Salvador will be the first to make cryptocurrency a legal tender. The same as the country,
Wearing his iconic upside-down baseball cap, Bukele said that in 2022, bonds will be issued entirely in Bitcoin. Construction will begin 60 days after financing is ready.
The city will be built near the Conchagua volcano to use geothermal energy to power the city and Bitcoin mining-an energy-intensive solution of complex mathematical calculations day and night to verify currency transactions.
The government is already running a Bitcoin mining pilot at another geothermal power plant next to the Tecapa volcano.
The volcano Conchagua de Mar is located in the Fonseca Bay in the southeast of El Salvador.
The government will provide land and infrastructure and work hard to attract investors.
The only tax collected there will be value-added tax, half of which will be used to pay municipal bonds and the rest will be used for municipal infrastructure and maintenance. Booker said that there will be no property tax, income tax or municipal tax, and the city’s carbon dioxide emissions will be zero.
The construction of this city will take into account the attraction of foreign investment. Booker said that there will be residential areas, shopping malls, restaurants and ports. The president talked about digital education, technology and sustainable public transportation.
At the closing of the Latin American Bitcoin and Blockchain Conference in El Salvador, Bukele said to the cheering crowd in English: “Invest here and make all the money you want.”
Since September 7, Bitcoin has become legal tender together with the U.S. dollar.
The government is supporting Bitcoin with a $150 million fund. To incentivize Salvadorans to use it, the government provided $30 worth of credit to those using its digital wallet.
Critics have warned that the currency’s lack of transparency may attract more criminal activities into the country, and the sharp fluctuations in the digital currency will pose risks to those who hold it.
Bitcoin was originally created to operate outside the government-controlled financial system, and Bukele said it will help attract foreign investment to El Salvador and make it cheaper for Salvadorans living abroad to send money to their families.
As Bukele took action to consolidate power, the concerns of El Salvador’s opposition and outside observers increased this year.
Earlier this year, voters gave the extremely popular president control of Congress. The new legislators immediately replaced the members of the Constitutional Chamber of the Supreme Court and the Minister of Justice, allowing Booker’s party to firmly control other government departments.
The US government responded that it would transfer aid from government agencies to civil society organizations. This month, Bukele submitted a proposal to Congress requiring organizations that receive foreign funds to register as foreign agents.