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.
Here's @nayibbukele announcing the Bitcoin City project for El Salvador. A city with 0 income tax, 0 CGT, 0 property tax, 0 payroll tax— Stephan Livera (@stephanlivera) November 21, 2021
Funded with 10% sales tax, and Bitcoin bonds. @Excellion joined to talk about structure and using liquid. pic.twitter.com/VlP2DbvRUn
Staying true to the vehement nature of Bitcoin maximalism, Bukele’s appearance was backed up by fireworks and a raucous reception.
They definitely didn’t skimp on the production budget for Bukele’s entrance — Metaverse avatar and all pic.twitter.com/VwspEggmLe— Sarah Kinosian (@skinosian) November 21, 2021
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.
Costa Rica wants to introduce a 13% VAT and 15% capital gains tax on #bitcoin.— Peter McLasso (@PeterMcCormack) November 21, 2021
El Salvador is issuing $1bn #bitcoin bond and building a city free of income and capital gains tax.
Winners and losers define themselves.
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.