Jakarta, CNBC Indonesia – After accepting Bitcoin as a legal tender, El Salvador plans to build a Bitcoin city.
El Salvador president Nayib Bukele claims this will be the first Bitcoin city in the world to be financed by cryptocurrency bonds.
“Bitcoin City will cover everything, residential areas, commercial areas, services, museums, entertainment, airports, ports, railways,” Bukele said at the Latin American Bitcoin and Blockchain Conference on Saturday, quoted by Reuters. AFP, Sunday (11/21/2021).
As is known, El Salvador, which has used the US dollar for the last two decades, became the first country in the world to legalize bitcoin as a legal tender.
In El Salvador, some of that energy comes from geothermal plants powered by the Tecapa volcano.
Bukele said the city would initially be powered by the Tecapa power plant before his government built a new geothermal power plant powered by Conchagua. “Bictoin City has zero Co2 emissions. It is a completely ecological city,” said Bukele.
To fund the project, El Salvador will issue $1 billion in bitcoin bonds by 2022, according to Samson Mow, chief strategist at Blockstream, a blockchain technology provider.
Mow said half of the bonds would be invested in bitcoin, and the other half in infrastructure. “El Salvador will become the world’s financial center,” Mow said.
Bukele said that Bitcoin City will only charge a value added tax (VAT). “We will have zero income tax. Zero percent forever. Zero capital gains tax, zero property tax, zero payroll tax,” he said.
(sys/hoi)
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