Bukele claimed the city planned in the eastern district of La Union. It will get geothermal power from a volcano and would not collect any taxes except the value-added tax.
El Salvador aims to establish the world’s first “Bitcoin City”. It is first funded by Bitcoin-backed bonds, according to President Nayib Bukele.
Bukele claimed the city planned in the eastern district of La Union would get geothermal power from a volcano. It would not collect any taxes except the value-added tax during an event that wrapped up a week-long promotion of Bitcoin in El Salvador (VAT).
Bukele estimated that the public infrastructure would cost around 300,000 Bitcoins ($17.7 billion). Half of the VAT would be used to fund the bonds issued to develop the city, and the other half would be used to pay for services such as garbage collection.
El SALVADORAN’S ARE STILL UNAWARE ABOUT BITCOIN
El Salvador became the first country in the world to recognise Bitcoin as legal tender in September.
Despite the fact that Bukele is a popular president, opinion polls reveal that Salvadorans are sceptical of his enthusiasm for Bitcoin, and its rocky rollout has fueled anti-government protests.
Bukele claimed Bitcoin City would be circular, with an airport, residential and commercial sections, and a centre plaza designed to look like a Bitcoin symbol from the air, like towns created by Alexander the Great.
Bitcoin enthusiasts are again in love with Bukele as he takes another step forward to make bitcoin more aware to public. Coming to Twitter, people appreciated his new vision towards technology and digitalization.
Cryptocurrency investor Peter McCormack puts two different examples of great leader mentioning Bukele.
El SALVADOR TO ISSUE BITCOIN BONDS IN 2022
El Salvador intends to issue the first bonds in 2022. According to Bukele, implying that it will happen within 60 days.
The first 10-year sale, dubbed the “volcano bond,” will be worth $1 billion, backed by Bitcoin and have a 6.5 percent coupon, according to Samson Mow, chief strategy officer of blockchain technology provider Blockstream.
He stated that half of the funds would be used to purchase Bitcoin on the open market. Other bonds would inevitably follow.
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