Daily Management Review

World’s First ‘Bitcoin City’ Planned By El Salvador


El Salvador says it plans to construct the first city in the world called "Bitcoin City."
The city, set to be constructed in the eastern region within La Union, will be powered by a nearby volcano the president Nayib Bukele announced recently.
The announcement was made during an event as part of the nation's weekly Latin American Bitcoin and Blockchain Conference.
On September 11, El Salvador became the first nation in the world to create bitcoin legal. The country has been using its U.S. dollar for more than 20 years.
Bukele stated that the city will be funded with bonds that are linked to virtual currencies. These are called cryptocurrency. Bitcoin is the largest cryptocurrency.
El Salvador plans to issue $1 billion worth of "bitcoin bonds" in 2022 The announcement was made by Samson Mow, who appeared at the event alongside Bukele. Mow has a position as an executive at Blockstream which is a blockchain technology supplier.
Once the financing is in place and the construction of "Bitcoin City" could begin within 60 days, Bukele said. Mow said that the city could become El Salvador "the financial center of the world."
The city is planned to be built close to Conchagua volcano. Conchagua volcano. Officials have said that the volcano will generate geothermal power to supply power to the city and the mining process for bitcoin. Geothermal power stations capture large amounts of heat that are trapped beneath the earth's surface. The heat produces steam that will turn machines to generate electricity.
It is the method through which bitcoins are made using computers that can tackle complex mathematical issues. Mining requires massive quantities of energy.
Bukele declared that the project will create "a fully ecological city that works and is energized by a volcano."
The government has said that it would provide infrastructure, land and low taxes for investors. The only tax that will be collected is a value-added tax (VAT). Bukele declared that there would not be any property, income and local tax. The city will add no carbon dioxide to our atmosphere.
The government has already launched an Bitcoin mining trial project. It is situated near a different geothermal region that lies alongside the Tecapa volcano, which is located in the eastern portion of Mexico.
The government is planning to use the first half of the tax revenue to finance the bonds that will be sold to construct the city. The remainder will be used to fund local services. Bukele estimated that infrastructure projects that were public in nature could cost around 300,000 bitcoins.
The purpose of the city is to attract new foreign investment. Bukele encouraged companies from all over the world to participate in the initiative and said the effort would be rewarded. "Invest here and make all the money you want," Bukele said.
The planned city will include stores, housing as well as restaurants, as well as ports the president stated. He also discussed plans to provide education via digital technology as well as public transport that doesn't impact the environment.
Bitcoin is supported by the government by providing 150 million dollars in a fund. In order to encourage Salvadorans to accept it the government provided the credit of $30 to anyone who use the digital wallet for bitcoin.
Bitcoin was the first cryptocurrency to operate independently of the financial system controlled by the government.
A report by the Salvadoran government has suggested that bitcoin could cut down the costs for Salvadorans living abroad to transfer money back to their families.