El Salvador May Soon Have A Bitcoin City As Plans Revealed

Nayib Bukele, the President of El Salvador has proposed plans to have a full city that’s funded and dedicated to Bitcoin (BTC).

Talking during a presentation at Bitcoin Week in El Salvador, Nayib stated his plans for a time in the near future where Bitcoin would become more engraved with El Salvador’s finances and economy. Back in September, El Salvador became the first country to launch Bitcoin as legal tender. No other nation had ever done that.

The experimental Bitcoin City will be built along the Gulf of Fonseca near one of the volcanos where the government will construct a power plant and use residual heating from the volcano to power BTC mining operations,” said Bukele in his address.

Bukele is hoping that the Bitcoin City will be one-of-kind, and feature everything that visitors will require during their visit there, including amenities such as an airport, commercial areas, restaurants and rail services.

The city is expected to resemble a physical canopy of Bitcoin, with the shape of a coin in the center, and a feature of the currency’s symbol. On a positive side, the President isn’t expecting residents to pay any capital gains, some payroll taxes or anything else to finance the construction of the city.

Bukele further said that there would no property and no income, and to realize this big plan, he would go ahead and use a tokenized financial instrument by Blockstream, or a Bitcoin bond worth $1bn.

Right now, the government of El Salvador is planning to split the bond into two. One half will be used to purchase more Bitcoin, while the other half will go into beefing the country’s supply to an approximate 2,000 Bitcoins in total. The bond will equal a 10-year U.S. dollar bonds and consist of an initial 6.5% pay. The moment a lock-up period of 5 years is achieved, El Salvador will now be able to begin selling its holdings of crypto to offer dividends to holders of bonds.

El Salvador appears to be thinking strategically ahead as a nation, as they also have plans to take away some of the Bitcoin supply and put it in a safe place to help with the currency’s appreciation.

In the meantime, though, you can choose to hold any amount of Bitcoin currency that you have in your possession or spend them recreationally. Some of the best spots are crypto casinos such as Bitcasino, 1xBit and FortuneJack.