El Salvador's President Nayib Bukele has announced plans to build the world's first "Bitcoin City" in an effort to boost investment in the country. President Bukele has said that the city will cost around 300,000 Bitcoins.
President Bukele said that the city will initially be funded by Bitcoin-backed bonds and levy any taxes beyond a value-added tax (VAT).
Bitcoin is already considered a legal tender in the country after it was made official in September of this year. El Salvador is the first country to make crypto a legal tender, and the decision was met by protests by citizens who believe that it will just add instability to the country.
El Salvador to Build World's First 'Bitcoin City'
El Salvador is going to be the home of the world's first "Bitcoin City," according to an announcement made by President Nayib Bukele. It will cost 300,000 Bitcoins to build.
The announcement was made during an event that marked the closing of a week-long promotion of Bitcoin. The president of El Salvador is a known and vocal supporter of Bitcoin.
According to a report by The Straits Times, the city will be located in the eastern region of La Union in El Salvador. The "Bitcoin City" will be initially funded by Bitcoin-backed bonds and will be powered geothermally by a volcano.
The creation of such a city will not levy taxes beyond VAT. Half of the VAT will be used to fund the bonds that will back the city. The other half of the VAT will be used for services. The initial bonds will be issued next year.
Plans to build a "Bitcoin City" is largely seen as President Bukele's "bet to harness the cryptocurrency to fuel investment in the Central American country," according to The Straits Times.
Related Article : El Salvador Buys Bitcoin Worth $21 Million-And Plans to Purchase MORE
Bitcoin as Legal Tender in El Salvador
Bitcoin officially became a legal tender in El Salvador on Sept. 7. El Salvador is the first country in the whole world to do so. The country's other legal tender is the U.S. Dollar.
According to a previous Tech Times report, the initial rollout of the cryptocurrency in the country had been rocky and problematic, which caused Bitcoin's price to drop. Among the problems encountered during the initial rollout involved the government's digital wallet.
Users of the digital wallet, which is called Chivo, had problems with downloading the app. It also temporarily went offline.
Anti-Bitcoin protesters also took to the streets of El Salvador over the government's decision to make it a legal tender in the country. Those against Bitcoin becoming a legal tender believe it will just bring inflation and instability to the country.
Read Also : Cryptocurrency Accepted as Legal Tender in El Salvador Sees Price Drop Amidst Rocky Rollout
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Written by Isabella James
