Just months after using BTC as a legal tender, the small Central American country plans to create a Bitcoin City using Blockstream and Bitfinex. Separately, the country said it would buy $ 500 million more from BTC.
Bitcoin City and El Salvador
The country made the news earlier this year by indicating that it would vote to accept the primary cryptocurrency as a legal tender. Despite increasing setbacks from global organizations such as the IMF, El Salvador’s authorities continued to legalize bitcoin from early September.
Since then, the nation began to extract BTC by using volcanoes, used the so-called “price falls” to buy more coins, and decided to use the potential profits from bitcoin̵[ads1]7;s rising price to build schools and animal hospitals.
During a week-long bitcoin conference in the country now, President Nayib Bukele went even further by announcing plans to build an entire city with a focus on cryptocurrency. It will be in the eastern region of La Union and will get geothermal power from a volcano. As such, the president promised that it would produce zero emissions and would not impose any taxes other than VAT.
“Invest here and make all the money you want. This is a completely ecological city that works and gets energy from a volcano.”
He added that the city will be circular – in the same way as cities founded by Alexander the Great – but will also have an airport, residential and commercial areas, and have a central space that will look like the BTC symbol from the air.
$ 1 billion Bitcoin Bond
The initiative will be supported by Adam Backs Blockstream and the iFinex company behind Tether (USDT) and Bitfinex. Samson Mow, CTO of Blockstream, explained that all parties involved will issue a $ 1 billion “bitcoin bond”, which will serve as a tokenized financial instrument on the Liquid Network.
“The $ 1 billion raised by the United States will be divided between a $ 500 million allocation of bitcoin (BTC) and a $ 500 million infrastructure to develop energy and Bitcoin mining infrastructure in the region.” – reads the Blockstream statement.
In addition, iFinex will be involved in creating a regulatory framework for digital assets and securities to “regulate, issue and operate digitized financial instruments in El Salvador,” the company said.
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