El Salvador, the first country to adopt Bitcoin as legal tender, is planning to build the first “Bitcoin City” in the world — funded initially by Bitcoin-backed bonds. This plan was revealed by the country’s president Nayib Bukele at a local event.
Bukele stated that the city in question would be built in the eastern region of La Union and powered by geothermal energy from a volcano, as well as not imposing any taxes unless it is value-added tax (VAT).
Invest here and make all the money you want. This is a fully ecological city that works and is energised by a volcano.
Nayib Bukele, President of El Salvador
The bonds issued to build the city would be funded by 50% of the VAT imposed, while the other half would be used for services like garbage collections. Bukele estimated that the public infrastructure may cost around $17.7 billion to build. The initial bonds is set to be issued in 2022.
Additionally, the president said that Bitcoin City would be circular and feature a central plaza that is designed to look like a Bitcoin symbol from viewed from above — complete with an airport, residential and commercial areas.
While Bukele may be well-liked as a president overall, there are also Salvadorans who showed their skepticism towards the president’s love of Bitcoin. Its bumpy launch has led to some people protesting against the government.