El Salvador will create Bitcoin City and purchase 500 million additional BTC. - Bitxcon
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El Salvador will create Bitcoin City and purchase 500 millio...
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El Salvador will create Bitcoin City and purchase 500 million additional BTC.

The small country in Central America adopted Bitcoin as its legal tender and plans to build a Bitcoin City using Bitfinex and Blockstream. Separately, the country stated that it will purchase $ 500 million in BTC.

Bitcoin City in El Salvador

El Salvador made headlines earlier in the year when it indicated that it would accept cryptocurrency as legal tender. Despite the criticisms of global organizations like IMF, El Salvador authorities legalized bitcoin in September.

The nation started mining BTC using volcanoes and used “price drops”, to purchase more coins. It also decided to use any bitcoin price appreciation to build schools and animal shelters. domestic.

During a week-long bitcoin conference in the country, President Nayib Bukele went even further by announcing plans to build an entire cryptocurrency-centric city. It will be located in the eastern region La Union, and will receive geothermal power from a volcano. As such, the president has promised it will produce zero emissions and impose no taxes other than VAT.

“Invest here to make all the money you desire. It is an ecologically-friendly city that is powered by a volcano.

He said that the city would be circular like the ones founded by Alexander The Great. However, it will also include residential and commercial areas as well as an airport. A central square is expected to look similar to the BTC symbol.

Bitcoin Bonds: $ 1 Billion

Adam Back’s Blockstream, iFinex and Bitfinex will support the initiative. Blockstream’s CTO Samson Mow explained that all parties will issue a $1 billion “bitcoin bonds”, which will be used as a tokenized financial instrument via the Liquid Network.

“The $ 1 Billion raised will be divided between an allocation of $ 500 Million in Bitcoin (BTC), and an infrastructure expense of $ 500 Million to build Bitcoin energy and mining infrastructures in the region. According to the Blockstream press release.

iFinex will also be involved in the creation of a regulatory framework for digital assets and securities in order to “regulate issue and manage digitized instruments in El Salvador”, according to the company.

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