El Salvador plans first ‘Bitcoin City’, backed by bitcoin bonds

San Salvador, Nov. 21 (BNA): El Salvador has plans to build the world’s first “Bitcoin City” that will initially be funded by bitcoin bonds, President Najib Bukele said Saturday, doubling the Central American country’s bet on the cryptocurrency. .

Speaking at a week-end event to promote Bitcoin in El Salvador, Bukele said that the planned city in the east of the country will receive energy supplies from the volcano and will not levy any taxes except for value-added tax (VAT).

“We will start financing in 2022, and the bonds will be available in 2022,” Bukele told a crowd of fans at the event, according to Reuters.

Speaking alongside Bukele, Samson Mao, chief strategist at Blockstream, a blockchain technology provider, said El Salvador will initially issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city.

In September, El Salvador became the first country in the world to adopt bitcoin as a legal tender.

HF