The president of El Salvador, Nayib Bukele, is still pushing for the Bitcoin agenda in his country. Bukele is a major Bitcoin proponent, and a few months after signing into a law a bill that makes Bitcoin legal tender, he has announced more plans to make the Central American country more Bitcoin savvy.
Bukele has now unveiled plans to build a Bitcoin city that will feature all the essentials of a modern city.
El Salvador’s Bitcoin City
Bukele made the announcement during a conference gathering with Bitcoin enthusiasts. This was a similar audience that he used earlier this year when he announced that El Salvador would adopt Bitcoin as legal tender and be the first country in the world to do so.
The Bitcoin City will be built at the base of a volcano, such that it will derive geothermal energy from the volcano and thus be a carbon-neutral city. Bukele had earlier announced the opening of a Bitcoin mining facility using power from another volcano. The mining facility has since mined some Bitcoin.
The Bitcoin city will be based at Conchagua volcano, while the Bitcoin mining facility is based at a separate geothermal plant facility based in the Tecapa volcano. With the rising concerns about the energy-intensive activity of Bitcoin mining, this initiative by El Salvador could be a turning point for the process of Bitcoin mining.
The Oceanside city will sit on the southeastern side of El Salvador at the Gulf of Finseca. The Salvadoran government has stated that it will provide land and infrastructure to investors that want to build on the city.
Bukele also stated that the city will not charge any extra taxes besides the VAT tax. This tax will be used to run the municipal and for maintenance services. Moreover, Bukele noted that the city will not charge any property, income, or municipal taxes; thus, it will attract investments.
The main purpose of this city will be to attract foreign investments. It will offer modern infrastructures such as residential areas, malls, restaurants, and a port. Moreover, it will be a tech-savvy city that will offer digital education and support technology.
In his speech during the conference held in El Salvador, Bukele stated “Invest here and earn all the money you want.”
El Salvador Pushing its Bitcoin Agenda
Bitcoin has been legal tender in El Salvador since early September. Residents in the country can use both Bitcoin and the US dollar to buy goods and services in the country. Bukele had earlier announced that the country had made major gains from its Bitcoin investments following the recent bullish market.
Part of the gains made from the country’s Bitcoin holdings would be used to build 20 “Bitcoin schools.” These schools would teach people about Bitcoin and digital assets. Bukele also stated that the building of these schools would not incur taxpayer’s money because it will solely rely on Bitcoin gains.
Another part of Bitcoin’s gains will also build a veterinary hospital in El Salvador’s capital. During the recent conference, Bukele stated that El Salvador was also planning to buy an additional $500M worth of Bitcoin.
When El Salvador was first planning to accept Bitcoin as legal tender, it received much criticism from global financial bodies such as the World Bank and the IMF. According to these institutions, the volatility of Bitcoin was a risky factor.