El Salvador to build the world’s first cryptocurrency city called “Bitcoin City”

El Salvador’s government is planning to build a city dedicated to bitcoin in the country. The project was named “Bitcoin City”. This was disclosed by the President of the country Nayib Bukele at the Bitcoin Week conference.

Bitcoin City

According to Bukele, the city will have a rounded shape, and an exhibition complex in the form of a giant “B” symbol will be created in its center. Residents of “Bitcoin City” will be exempt from all taxes (income, property, capital gains, etc.), except for VAT. Also, the new city will use exclusively renewable geothermal energy sources.

El Salvador to build the world first Bitcoin city

To finance the construction of Bitcoin City, the El Salvadorian authorities will issue tokenized 10-year bonds worth $ 1 billion. The country’s partners in this project are Bitfinex and Blockstream. Bitfinex CTO Paolo Ardoino said the company will develop a platform for the country’s authorities to create tokenized assets.

Blockstream security director Samson Moe explained that the funds raised from the bond issue will be split in two. $ 500 million will be invested in bitcoin for five years, and the remaining $ 500 million will be spent on creating urban infrastructure and organizing bitcoin mining.

El Salvador to build the world first Bitcoin city 1

For those that are unaware, El Salvador is the first country in the world where bitcoin has legal tender status (on par with the US dollar). On September 7, the corresponding law came into force in the country. On the same day, the authorities bought the first 550 bitcoins. Additional purchases of bitcoins took place by the El Salvadorian authorities on September 20 ( 150 BTC ) and October 28 ( 420 BTC).

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