El Salvador reveals plans for Volcano-powered ‘Bitcoin city’

Speaking at a Bitcoin investment summit over the weekend, Nayib Bukele, the pro-Bitcoin president of El Salvador, announced plans to build the first ‘Bitcoin city’.

The location of the city will be in the eastern department of La Unión, in between the municipalities of La Unión and Conchagua.

Financing for the development of the aptly named “Bitcoin City” will come via the issuance of Bitcoin-backed billion-dollar bonds in 2022.

Staying true to the vehement nature of Bitcoin maximalism, Bukele’s appearance was backed up by fireworks and a raucous reception.

Bukele said that Bitcoin City would be powered by geothermal energy from closeby volcanoes, as well as being free from taxation, excluding VAT.

"Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano,” Bukele said.

50% of the money raised from VAT will be used to pay off the bonds issued to fund the city’s initial costs, while the other half will pay for public services, said Bukele.

The Salvadoran president added that 300,000 Bitcoin’s would be required to finish the infrastructure for the new city.

"If you want bitcoin to spread over the world, we should build some Alexandrias,” said Bukele.

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