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El Salvador to create 'Bitcoin City'

Monday 22 November 2021 13:47 CET | News

El Salvador, the only country in which Bitcoin is a legal tender, has announced plans to build an entire city based on the cryptocurrency.

‘Bitcoin City’ will be located along the Gulf of Fonseca near a volcano. The government plans on locating a power plant by the volcano to provide energy for both the city and Bitcoin mining, the president said.

Bitcoin City will be a full-fledged metropolis with residential and commercial areas, restaurants, an airport as well as a port and rail service, as representatives said. The city will be laid out in a circle (like a coin) and in the city centre will be a plaza that will be host to a huge Bitcoin symbol. The city will have no income, property, capital gains or payroll taxes.

The president also said El Salvador plans on issuing USD 1 billion US ‘Bitcoin bond’, a tokenised financial instrument developed by Blockstream, on the Liquid Network. Of that amount, USD 500 million will be used to help construct needed energy and Bitcoin mining infrastructure and USD 500 million to buy more Bitcoin. At the cryptocurrency’s recent trading price of about USD 59,000, that would bring the country’s treasury stash to just under 2,000 Bitcoins.

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Keywords: cryptocurrency, Bitcoin, digital assets
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: El Salvador
This article is part of category

Blockchain & Cryptocurrencies