Volcano-powered ‘Bitcoin City’ to be built in El Salvador, according to the country’s president

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At the Latin Bitcoin Conference at Mizata Beach on November 20, 2021, the president of El Salvador, Nayib Bukele, gestured during his remarks. Photo: Marvin Recinos / AFP (Getty Images)

techno.rentetan.com – Bukele intends to use bitcoin bonds to raise money for the city’s building. When viewed from above, the center plaza will have an appearance similar to the bitcoin sign. Right-wing Salvadoran President Nayib Bukele, 40, is again placing his faith in bitcoin to help move the country ahead. As a way to boost awareness of the cryptocurrency and encourage wider adoption, he proposes building a “Bitcoin City” powered by volcanic geothermal energy.

“Bitcoin City” will be created in La Union, El Salvador’s easternmost district, according to Bukele on Saturday. A value-added tax, or VAT, will be the only tax imposed by the city, according to Reuters, and the city’s center square will be designed to resemble the bitcoin symbol from above. There will be an airport and residential and business sections in Bitcoin City, which will be circular in shape.

El Salvador’s government said in a press release that the Conchagua Volcano would make it an ideal location for bitcoin mining. Two stratovolcanoes, one on top of the other, make up Conchagua, which overlooks the Gulf of Fonseca.

El Salvador became the first country to acknowledge bitcoin as a national currency in September. At an event concluding the week of promotion of bitcoin, Bukele presented his ideas for Bitcoin City.

“Invest here and make as much money as you want,” Bukele said of the opportunity. “A volcano powers and energizes this entirely ecological metropolis.”

A total of $1 billion in “bitcoin bonds” will be issued in 2022 to raise money for the construction of Bitcoin City, according to specialists in attendance. These bitcoin sidechain bonds have a notional yield of 6.5% and will be issued on the liquid network.

As the company in charge of the liquid network said, the money obtained would be used to build out the city’s infrastructure and expand bitcoin mining operations in the area. Bitcoin will be purchased with the remaining $500 million.

Bukele and his bitcoin gang may be delighted about Bitcoin City, but the people of El Salvador, one of the poorest countries in Latin America, are unlikely to be as enthusiastic. Many people are apprehensive of their president’s enthusiasm for the digital currency, which has led to a wave of protest against the government’s distribution of the currency.

Ultimately, El Salvador’s citizens would profit more if their leadership put more effort into improving their lives rather than obsessing over an unstable digital currency. However, the odds are stacked against us.