Nayib Bukele, president of El Salvador, reported on the creation of bitcoin city to accelerate its growth and development and drive hyperbitcoinization.
El Salvador, the first country in the world to recognize and adopt Bitcoin (BTC) as legal tender, you will build your own Bitcoin city, called Bitcoin City, to accelerate its technological development and hyperbitcoinization. This was reported by the president of the country, Nayib Bukele, during the closing ceremony of the Latin American Bitcoin & Blockchain Conference (LABITCONF) One. Bukele pointed out that bitcoin city It will be the world's first geothermal-powered, bond-funded, tax-free Bitcoin city where bitcoiners and technology enthusiasts can develop and grow.
El Salvador's objective with the construction of this city, which will begin next year, is to promote the massive use of Bitcoin in the country and the world, while being able to accelerate its growth and technological development and innovation. Likewise, El Salvador wants to embark on its path and accelerate hyperbitcoinization, a fundamental pillar of the crypto community. The bitcoin city It will be located along the Gulf of Fonseca, near the towns of La Unión and Conchagua in the Latin country.
It may interest you: El Salvador shows the world how to explore renewable energy for Bitcoin mining
Bitcoin City, tax-free metropolis
bitcoin city It will be a city in every sense of the word. During his speech, Bukele pointed out that this new and future city will have all the characteristic elements of any other in the world, from political infrastructure to spaces for development, investment and recreation. bitcoin city It will be a circular metropolis with a gigantic B carved in the middle. The Bitcoin city will have its own mayor's office, as well as different residential areas, establishments, health services, educational centers, shops, companies, an airport, restaurants, parks and green areas, and even a museum. Bukele highlighted the importance of geothermal energy, coming from its volcanoes, to guarantee the sustainability of the Bitcoin City.
The future Bitcoin city of El Salvador has the support of large companies in the industry, such as Blockstream. In fact, Samson Mow, CSO of Blockstream, stated that El Salvador's initiative will be able to accelerate hyperbitcoinization and begin to build a new financial system on Bitcoin, the cryptocurrency most important in the world. Mow was in charge of the installation of a satellite signal at El Salvador's Bitcoin mining center, LaGEO SV, last week, to connect the crypto mining center's Bitcoin nodes to BlockStream and keep them synchronized and updated without an Internet connection. This is a project aimed at ensuring Bitcoin mining from the Central American country.
Tax free
Anthony Pompliano, one of the best-known Bitcoin evangelists and founder of the newsletter PompletterAlso expressed his support for the El Salvador initiative, pointing out that thanks to new technologies, the bitcoin city It will be one of the first cities in the world to be self-financing without depending on excessive taxes charged to its citizens.
The crypto investor Preston Pysh highlighted that El Salvador is becoming the “MicroStrategy” of national states, alluding to the business intelligence company directed by Michael saylor, which has become the largest institutional Bitcoin investor in the world, with more than 114.000 BTC on its balance sheets.
The construction of the bitcoin city will make El Salvador a much more attractive country that will attract foreign investors, generating new opportunities for its citizens. bitcoin city It will be free of income, capital gains, property, payroll and municipal taxes, as reported by Bukele during his presentation. The only tax that will be collected in the city is the value added tax (VAT), which will serve for its own maintenance and care.
$1.000 billion Bitcoin bonuses
for the construction of bitcoin city, El Salvador will issue Bitcoin bonds on Liquid Network worth $1.000 billion. The bonds can be purchased with a minimum investment of $100 and will pay annual interest of 6,5% for 10 years, Bukele reported.
50% of these bonds, that is, 500 million dollars, will be used for the construction of the future city. The remaining $500 million from the bond issue will be invested in acquiring more bitcoins and reinforcing mining infrastructure in the region, Bukele said. To date, El Salvador holds more than 1.120 BTC, valued at around $63 million at the time of this edition.
Social investment
Bukele's management wants to make the country a pole of technological development and innovation. The president of El Salvador has already announced several social investment projects powered by Bitcoin, such as the construction of veterinary hospitals and schools, 100% financed with the profits generated by El Salvador's investment in BTC.
LABITCONF 2021 was full of great and important announcements for the crypto industry in the country and in Latin America. El Salvador also reported that it would integrate Bitcoin and Blockchain into the nation's educational plans, to accelerate digital and technological education in its schools and educational centers.
Continue reading: Taproot, the most anticipated Bitcoin update, is now live on the mainnet
