TL; DR Breakdown
- El Salvador will build a Bitcoin City in 2022.
- Dollar bonds will be used to fund the city.
- President Nayib Bukele wants investors from overseas.
Bitcoin has no doubt cemented its place at the top of the pick in terms of assets that traders can invest in the crypto market. Coupled with the fact that the asset is ever rewarding, it is the most successful asset in the crypto market. With this, some countries have established their intention to adopt the digital asset as a native currency or invest in it. One such country is El Salvador, which announced that Bitcoin had become a legal tender. In recent news, the President of the country, Nayib Bukele, has announced that El Salvador will build a Bitcoin city.
El Salvador will fund the development with dollar bonds
President Nayib Bukele made this intention known at the Bitcoin Summit held yesterday, giving insight into the plan to achieve the dream. According to Bukele, there have intentions to locate the Bitcoin city between the La Union and Conchagua. To fund the development of the Bitcoin city, El Salvador will use billion-dollar bonds, which will be backed by Bitcoin. Notably, the construction of the city is set to kick off in 2022. Bukele was present at the summit as he gave the closing speech at a conference that lasted seven days.
One notable feature about his appearance was the high-grade entertaining entrance and budget production. In his statement, the President mentioned that the Bitcoin city would be powered by volcanoes in the nearby areas of the location. He also established that activities in the Bitcoin city would be free of tax asides from the payment of value-added tax (VAT).
Bukele wants investors from overseas
Bukele urged everyone to invest in the Bitcoin City and make massive profits when the city kicks to life. He also reiterated that power would not be an issue as the plant will run on geothermal energy, which will be gotten from the volcanoes. Bukele also spoke about how the money raised would be put to use. In his statement, he said the issued bonds would be paid back using half of the generated revenue while the other half would go to services across the country that needs to be done.
Putting it into perspective, Bukele said that the city would need nothing less than 300,000 Bitcoin to be completed. Although the details behind the Bitcoin city are still sketchy, Bukele said he hopes the city acquires funding from investors overseas. He said the city would be equipped with its airport alongside other needed amenities to keep it running.
El Salvador announced Bitcoin as a legal tender across the country, sparking criticisms from all parties across the country. Vitalik Buterin said that adopting Bitcoin as a legal tender does not follow the tenets of Bitcoin. However, other Bitcoin maxis are full of praise for the President for making such a bold move as crypto continues to gain mainstream adoption. Although the criticisms continue to pour in, Bukele is undeterred in his drive to adopt the first asset. El Salvador now has a new service that allows them to get paid in Bitcoin directly from their bank account during withdrawals. The service was made possible by Strike, a Bitcoin wallet service provider.