El Salvador plans to build Bitcoin City, which will be financed with bonds, backed with the cryptocurrency. The country’s president, Nayib Bukele, revealed this on Saturday, at the end of a conference dedicated to the promotion of the digital currency.
Bitcoin City will be built between the city of La Union and Conchagua in the shape of a circle, emulating a coin. According to Bukele, the new metropolis will include residential areas, shopping malls, restaurants, a port, an airport, a train and much more, everything around its central theme, Bitcoin.
Besides, Bitcoin City’s great central square will celebrate the creation of the cryptocurrency and there will even be a Bitcoin museum, where people will be able to learn about the evolution of money.
The residents of Bitcoin City will be exempt from taxes, except for VAT. “Half of it will be used to pay the municipality’s bonds and the rest for public infrastructure and city maintenance,” Bukele explained.
The president of El Salvador announced that in 2022 the issuance of bonds within the bitcoin ecosystem will begin and the project will start 60 days after the financing. Salvadoran authorities will initially issue one billion dollars in Bitcoin-backed bonds to start raising funds to build the city.
Last week, El Salvador hosted Bitcoin Week, an annual conference held since 2013. With the decision to build Bitcoin City, the country is moving forward in its commitment to financial innovations.
Last September El Salvador became the first country in the world to adopt Bitcoin as legal tender and now, according to the words of the Presidential House: “Bitcoin City will be the most advanced city of its kind, more famous than the largest cities and metropolises around the world. It is the beginning of what will be called ‘Bitcoin City Metropolitan Area’.”
