TL; DR breakdown
- El Salvador will build a bitcoin city in 2022.
- Dollar bonds will be used to finance the city.
- The vice president wants investors from abroad.
Bitcoin has undoubtedly topped the list in terms of assets that traders can invest in the crypto market. Along with the fact that an asset is always valuable, it is the most successful asset in the crypto market. In doing so, some countries have established their intention to accept or invest in digital assets as a local currency. One of these countries is El Salvador, which announced that bitcoin has become a legal currency. In recent news, the country’s vice president, Buckle, has announced that El Salvador will build a bitcoin city.
El Salvador will provide this development with dollar bonds
President Nayib Bukele announced the goal at the Bitcoin Summit yesterday, giving an insight into the plan to achieve that dream. According to Bukele, we plan to place the city of Bitcoin between La Union and Conchagua. El Salvador will use $ 1 billion in Bitcoin-backed bonds to finance the development of the city of Bitcoin. It is noteworthy that the construction of the city is scheduled to begin in 2022. Buckle was the keynote speaker at the seven-day conference.
One notable feature about her appearance was her high-profile entries and budget generation. The president said in a statement that the city of Bitcoin is powered by volcanoes in nearby areas. He also announced that activities in the city of Bitcoin will be tax-free except for the payment of VAT.
Bukele wants investors from abroad
Bokle urged everyone to invest in the city of Bitcoin and make huge profits when the city begins to live. He also stressed that energy will not be a problem because the plant will work with geothermal energy from volcanoes. Buckle also talked about how to use the money raised. He said in a statement that the bonds would be repaid using half of the revenue generated and the other half would be spent on services across the country that need to be done.
With that in mind, Buckle said the city does not need less than 300,000 bitcoins to complete. Although the details of Bitcoin City are still clear, Bukele said he hopes the city will receive funding from overseas investors. The city will be equipped with its own airport, along with other amenities needed to continue operations, he said.
El Salvador declared bitcoin as a legal currency nationwide, prompting criticism from all parties across the country. Vitalik Butrin said that accepting bitcoin as a legal currency does not follow bitcoin principles. However, other bitcoin maxes are full of praise for the president for making such a bold move because crypto continues to accept mainstream. Although criticism continues, Buckle does not give up trying to accept the first asset. El Salvador now has a new service that allows them to pay directly to Bitcoin from their bank account at the time of withdrawal. This service was made possible by Strike, a provider of bitcoin wallet services.