Backed By Bitcoin Bonds, El Salvador Plans To Build World’s First Bitcoin City

President Nayib Bukele said Bitcoin City would be circular, with an airport, residential and commercial areas, and feature a central plaza designed to look like a Bitcoin symbol from the air

Representational image | Photo: Getty

New Delhi: President Nayib Bukele, president of El Salvador, said that Central American country is all set to build the world’s first Bitcoin City, funded initially by Bitcoin-backed bonds. Bukele said that he will double down on his bet to harness the cryptocurrency to fuel investment in the country.

According to Reuters, speaking at an event around a week-long promotion of Bitcoin in El Salvador, the president said the city planned in the eastern region of La Union would get geothermal power from a volcano and not levy any taxes except for value-added tax (VAT).

“Invest here and make all the money you want. This is a fully ecological city that works and is energised by a volcano,” said 40-year-old Bukele in the beach resort of Mizata on Saturday.

According to Bukele, half of the VAT levied would be used to fund the bonds issued to build the city and the other half would pay for services such as collection of garbage. Estimating the public infrastructure would cost about 300,000 Bitcoins, which is around $17.7billion.

Though Bukele is quite popular in his country, opinion polls show Salvadorans are bit sceptical about his love for Bitcoin, and its bumpy introduction has fuelled protests against his government.

The president has said the new Bitcoin City would be circular, with an airport, residential, and commercial areas, and feature a central plaza designed to look like a Bitcoin symbol from the air. “If you want Bitcoin to spread over the world, we should build some Alexandrias,” said Bukele, a tech-savvy president who in September proclaimed himself ‘dictator’ of El Salvador on Twitter in an apparent joke.

Bukele added that the country plans to issue the initial bonds in 2022, suggesting it would be in 60 days time.