El Salvador’s President, Nayib Bukele, has stated that the country intends to establish the world’s first “Bitcoin City,” which will be fueled by a volcano and financed with bitcoin bonds.
Bukele stated at the Latin American Bitcoin and Blockchain Conference on Saturday that Bitcoin City “would have everything: residential areas, business areas, services, museums, entertainment… airport, port, train.”
El Salvador was the first country in the world to adopt bitcoin as legal money, despite having used the US dollar for two decades.
The Conchagua volcano, according to Bukele, “will power the entire city as well as the mines.”
Bitcoin mining is the process of creating new bitcoins by utilising computers to solve complicated mathematical problems, which consumes a lot of energy.
Some of that electricity comes from a geothermal plant in El Salvador that is fed by the Tecapa volcano.
Bukele stated that the city would be powered by the Tecapa plant for the time being until his administration constructs a new geothermal plant fueled by Conchagua.
“There are no CO2 emissions. This is a completely green city “Bukele addressed the audience.
According to Samson Mow, chief strategy officer of Blockstream, a blockchain technology developer, El Salvador will issue $1 billion “bitcoin bonds” in 2022 to fund the project.
Mow stated half of the “volcano bonds” will be invested in bitcoin and the other half in infrastructure on stage with Bukele.
“El Salvador will be the world’s financial hub,” Mow said.
Bitcoin City, according to Bukele, will simply levy a value added tax (VAT).
“There will be no income tax. 0% for the rest of time. There is no capital gains tax, no property tax, no payroll tax “he stated
The building of Bitcoin City has been assigned no timetable.