El Salvador, the first country in the world to recognize Bitcoin as legal tender, is now building a “Bitcoin City” that is being funded by Bitcoin-backed bonds.
President Nayib Bukele, a vocal supporter of the cryptocurrency, said during the “Feel The Bit 2021” event in the town of La Libertad that the ambitious project will initially be funded by $1 billion USD in Bitcoin bonds. Part of the money raised will go towards infrastructure costs while the other half will be reinvested in Bitcoin.
In a press release, Bukele’s office said that Bitcoin City will have residential and commercial areas, services, entertainment, restaurants, an airport, port and a train, and will be built near the Conchagua volcano to generate electricity toward mining efforts. The ambitious plan also purports to offer “No income tax, zero property tax, no procurement tax, zero city tax and zero CO2 emissions.”
“The only tax in Bitcoin City is VAT, and half will be used to pay the municipality’s bonds and the rest for the public infrastructure and maintenance of the city,” Bukele said.
Construction of the city is slated to begin 60 days after it secures financing, likely sometime in 2022.
Bitcoin became an official state currency in June and has since been used to build schools and prop up the country’s new crypto wallet.
In other news, NYC’s new mayor said he would take his first three paychecks in Bitcoin.
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