After becoming the first country in the world to accept Bitcoin as legal tender, El Salvador is now planning to build a Bitcoin city at the base of Conchagua volcano.
The site hopes to use geothermal energy from the volcano to power bitcoin mining in the south-eastern region of La Unión.
President Nayib Bukele didn’t give a date for the expected completion of the city – which is planned to be circular to represent the shape of a coin – but said that he expects it to cost around 300,000 bitcoins (£12.9 billion) to complete the city’s infrastructure.
Addressing crowds at a promotional Bitcoin event, Mr. Bukele said the new city would “include everything”.
“Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything devoted to Bitcoin,” he added.
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El Salvador’s recent move to become the first country in the world was met with large-scale protests and unrests, though President Bukele seems ready to double down on the country’s commitment to the digital currency.
Bukele said that no income tax will be levied within the new Bitcoin city, only value added tax (VAT). He added that half of the value gained from this revenue would be used “to build up the city” while the other half would be used to keep the streets “neat and clean”.
Back in September, El Salvador turned to Bitcoin as a means to rejuvenate its flagging economy, introducing it (as well as the US dollar) as legal tender. A new digital wallet app was released, incentivising its uptake with £22 worth of Bitcoin for every citizen.
As well 200 new cash machines being installed across the country, business are now obliged to take Bitcoin wherever possible, in a move that has starkly divided the country.
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