Nayib Bukele, El Salvador’s 40-year-old right-wing president, is once again banking on bitcoin to move the country ahead. His questionable concept is to construct a “Bitcoin City” powered by geothermal energy from a volcano in order to increase the cryptocurrency’s reputation and encourage its wider adoption.
Bukele said on Saturday that the country’s so-called Bitcoin City will be created in La Union, a district in El Salvador’s east. According to Reuters, the city would not impose any taxes other than a value-added tax, or VAT, and will have a central plaza that will resemble a bitcoin sign from above.
Furthermore, Bitcoin City will be circular, including an airport, as well as residential and commercial zones.
“Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano.”Bukele
About 5 months ago, during a televised speech, El Salvador President Nayib Bukele gave free bitcoin to its citizens saying that adult citizens will be offered $30 of Bitcoin to those who will install and register the country’s new cryptocurrency app, Chivo.
Experts indicated during the event that the nation will issue $1 billion in “bitcoin bonds” in 2022 to raise cash for the construction of Bitcoin City. The bonds will be issued on the liquid network, a bitcoin side chain network, and will have a 6.5 percent nominal yield.
Nowadays, everyone wants bitcoin! Even the mayor of New York City has stated that he wants to be paid in bitcoin.
Blockstream, which administers the liquid network, stated that $500 million of the cash raised will go toward municipal infrastructure and bitcoin mining in the region. The remaining $500 million will be used to purchase additional bitcoin.
It’s difficult to picture El Salvadorans, one of Latin America’s poorest countries, being as thrilled about Bitcoin City as Bukele and his bitcoin gang. The digital currency’s deployment was marred by difficulties, which prompted anti-government rallies, and surveys show that residents are leery of their president’s penchant for bitcoin.