InstaForex

November 22, 2021

El Salvador revealed a new plan, 'Bitcoin City'!

 New months in charge of Bitcoin (BTC) as a legal tender at El Salvador, his president Nayib Bukele wants to set up the world's first Bitcoin city.


Obviously on November 20, the establishment of the city will be fully supported by bonds based on Bitcoin worth $ 1 billion, in collaboration with Blockstream and BitFinex.


Bitcoin city or known as Bitcoin City will be located between La Uniόn district and Conchagua volcano in East La Uniόn.


This also means El Salvador will ensure that Bitcoin's adequacy resulting from geothermal energy so that covers the East of the country, including not taxing except for value added tax (VAT).


This idea was originally proposed by Bitcoin's hardcore supporters, Max Keiser in June 2021. At that time, the figure claimed Batcoin Bon would help El Salvador from being bound by the International Monetary Fund (IMF) loan.



Bond Bitcoin (BTC)


Bukele assures Bitcoin bonds will be launched in 2022 with a total of $ 1 billion (RM 4.184 billion), in the form of dollar dollar USD for 10 years.


Here's the details of Bitcoin City's future planning:


In addition to focusing on Bitcoin bonds, the balance will be used for the development of infrastructure and BTC mining facilities using geothermal energy.

The government will start selling Bitcoin and paying additional dividends to investors from the next 5 years.

Based on the Blockstream model, at the end of 10 years, the annual revenue for the Bitcoin project will approach 150%.

This effort will indirectly produce El Salvador as Singapore Latin American version.