It is the Central American country of El Salvador has legalized bitcoin in September, and was the first nation anywhere in the world that has been able to have done so. The country is now set to become the first nation to create the first bitcoin-based city. El Salvador has made up the decision to go ahead with its plans to build the first Bitcoin city in the world. The financing for this will initially be made through bitcoin-backed bonds.
This will be initially financed through bitcoin-backed bonds. El Salvador President Nayib Bukele announced that “Bitcoin has doubled its investments” within El Salvador to promote investment and the use of cryptocurrency. The city, which is to be constructed in Eastern La Union, will see an entirely new dimension of development from bitcoin and will not be taxed unless it is the value-added tax (VAT).” President Nayib Bukele is currently hosting a bitcoin week across the country. He was speaking at the end of the campaign’s program.
President Bukele stated, “Invest here and earn the amount you’d like to earn. The city is committed to this.” The majority of the VAT that is that bitcoin is charged is used to finance bonds for the development of the city. The remainder will be used to pay for services such as tax collection and garbage collection. In addition, approximately 300,000 bitcoins will be used to build the infrastructure for the public.
Informing the public about the layout of the town, President stated it was likely that the views of the city from above will appear like bitcoin. In addition, an airport is also planned in the city, along with residential and commercial buildings. An initial bond offering with bitcoin is scheduled for El Salvador in 2022.
It will have many different cuisines in the City (Bitcoin City). There will be no need to pay tax on income in the city. The city will be able to draw energy from a volcano, and bitcoin bonds would be the main source of income’ in this. The ‘Bitcoin City’ will be equipped with every facility, including commercial and residential areas, museums, services port, airport entertainment, and rail.
We can tell our readers this: El Salvador is the first nation in the world to recognize that the US dollar as their currency over the past two decades. This has made bitcoin legal as currency. It is a legal currency in El Salvador. Bukele has stated that the bitcoin city, as well as bitcoin mining, will draw electricity from the Cochagua volcano.
In bitcoin mining, bitcoins are created by solving mathematical puzzles by using computers. The whole process takes lots of energy. The energy that is used that is generated in El Salvador comes from geothermal plants. They generate energy through the use by Tekapa volcano. The President stated that there will no carbon emissions from the city. In other words, there will be no air pollution in this city. It will be a green city.
To finance this plan, El Salvador will issue bitcoin bonds of $1 billion in 2022. This means that the first year of the city will be financed with bitcoin. Blockstream Director of Strategy Samson Mou announced on stage together with President Trump that the majority of the Volcano Bonds would be utilized to fund bitcoin.
El Salvador is going to become the capital of financial transactions in the world. The President has stated that residents of this bitcoin-rich city will be required only to pay VAT. This means that there will be no tax on income assessed here. Here, Capital Gains Tax, as well as Property Tax and Tax on Payroll Tax, will be devoid. However, when the construction will begin and when it will be completed is not set as of yet.
The President was informed of the city’s infrastructure and stated that the view from above of the city will be as bitcoin. It will include residential and commercial structures. In addition, Nayib said he is planning to issue a bond to El Salvador in 2022 which is part of the strategies for bitcoin.
There was plenty of excitement among citizens of this Bitcoin city that were created by El Salvador and many types of tweets were made. Nayib was also happy when he announced the bitcoin city, and was seen with the people of El Salvador.
