The world’s first bitcoin city built from volcanic energy

El Salvador’s President Nayib Bukele said the Central American country will build the world’s first “bitcoin city”, with initial investment to be raised from the cryptocurrency’s bonds.

According to Reuters news agency, speaking at an event on November 20, Mr. Bukele said the city would be built in the La Union area, east of El Salvador. The city will use geothermal energy from a volcano and it will not levy any other taxes except value added tax (VAT).

Half of the VAT collected will be used to finance the bonds issued to develop this city. The other half will be used to pay for services such as garbage collection.

President Bukele said the “Bitcoin City” would be circular, with an airport, residential and commercial areas and a central square designed to look like the bitcoin symbol when viewed from the air. However, it is not clear exactly when this city will be completed.

Bukele said El Salvador will start raising investment funds from bitcoin bonds when the bonds are issued in 2022.

Blockstream chief strategy officer Samson Mow said that El Salvador will first issue $1 billion worth of bitcoin bonds to raise funds for the aforementioned construction project.

Over the past time, many countries around the world have struggled to find ways to manage cryptocurrencies. China has banned cryptocurrency trading nationwide.

Meanwhile, in September, El Salvador became the first country in the world to accept bitcoin as legal currency in the country.

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