El Salvador, which was the first and only country to use BTC as legal tender, will be looking into building an oceanside ‘Bitcoin City’ at the base of a volcano.
Volcano-Powered Bitcoin City
The country’s BTC-loving president Nayib Bukele has announced in a gathering at the town of La Libertad that the ‘Bitcoin City’ will be established near the Conchagua volcano, which lies on the southeastern side of El Salvador on the Gulf of Fonseca. The intention behind this is to leverage geothermal energy to power the massive electrical requirements of the city and Bitcoin mining operations. Furthermore, according to early reports, the government will be providing the land and infrastructure to attract inventors to the new city. This is not the first time that the country has explored geothermal energy. In fact, there is already a pilot Bitcoin mining operation underway at a geothermal power plant beside the Tecapa volcano.
Present Bukele made the announcement at the “Feel The Bit 2021” event and further stated that the project will be funded by $1 billion raised from Bitcoin-backed bonds. However, the government plans will not be investing all of the funds in the city’s infrastructure. Instead, the remainder will be reinvented back in Bitcoin.
No-Tax Zone
Further information about the Bitcoin City was revealed via a press release from the office of the President. It divulged that the city will include residential and commercial areas, services, entertainment, restaurants, an airport, a port, and a train. Additionally, the city is also targeting to do away with income tax, property tax, procurement tax, and city tax while only holding on to VAT to pay for municipality bonds, public infrastructure, and city maintenance.
The President stated,
“In Bitcoin City, we will have mining, agriculture, culture, and sports. When we are no longer there, this will last, and everyone will be able to see the city.”
The press statement also claimed to eliminate all CO2 emissions from the city. The construction of the city will commence two months after it secures all the financing, thereby putting the project start date sometime in 2022.
El Salvador And Bitcoin
El Salvador and its president have been in the crypto news ever since the country decided to adopt BTC as legal tender. Furthermore, the country has continued its Bitcoin rally by continually buying the dip and building a Bitcoin repository. The government currently holds 1120 BTCs. The gains earned from the BTC investments have been pledged into several projects, including building a veterinary hospital.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
