El Salvador will build a “Bitcoin City” powered by a volcano

El Salvador’s President Nayib Bukele gestures in a speech at the closing ceremony of the Latin Bitcoin Conference on Mizata Beach on November 20, 2021.

El Salvador’s President Nayib Bukele gestures during a speech at the closing ceremony of the Latin Bitcoin Conference in Mizata Beach on November 20, 2021.
Photo: Marvin Resinos/AFP (Getty Images)

El Salvador’s 40-year-old right-wing president Nayib Bukele once again bet on Bitcoin to push the country forward. His dubious plan is essentially to build a “bitcoin city” powered by volcanic geothermal energy to help improve the image of cryptocurrency and encourage its widespread use.

Booker said on Saturday and Sunday The country’s so-called Bitcoin City will be built in the La Union region of eastern El Salvador. Reuters report Except for value-added tax or value-added tax, the city does not levy any taxes and has a central square that looks like a bitcoin symbol from above. In addition, Bitcoin City will be circular, including an airport as well as residential and commercial areas.

It will naturally become a place for Bitcoin mining, Energy-intensive tasks The Salvadoran government stated in a statement that the Conchagua volcano will facilitate this process. Press Releases. Conchaguayo Two overlapping layered volcanoes It overlooks the Fonseca Bay.

Bukele revealed his plans for Bitcoin City in a speech at an event One week after promoting Bitcoin in El Salvador, Which becomes First country Bitcoin was recognized as the national currency in September.

“Invest here and make the money you want,” Booker said. “This is a completely ecological city, inspired and operated by volcanoes.”

In the event, the expert explained The country will issue a $1 billion “Bitcoin Bond” in 2022 to raise funds to build a Bitcoin City. The bonds will be issued on a liquid network (a Bitcoin sidechain network) with a nominal yield of 6.5%.

Blockstream, which manages the mobile network, said that US$500 million of the funds raised will be used Committed to infrastructure Mining for cities and Bitcoin in the region. The remaining $500 million will be used to purchase more bitcoins.

It is hard to imagine that the citizens of El Salvador, one of the poorest countries in Latin America, would be as excited about Bitcoin City as Buckler or his Bitcoin team.Digitizing The introduction of the currency was accompanied by glitches, among which Provoked protest Against the government, and Poll found That Citizens are wary of their president’s enthusiasm for Bitcoin.

In the final analysis, if El Salvador’s president focuses more on changing and improving their lives, rather than focusing on one problem, they will certainly see more benefits. Extremely unstable Digital currency. However, the odds do not look good.

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