El Salvadorian president Nayib Bukele recently announced plans to build the world’s first “Bitcoin City” initially financed by bitcoin-backed bonds, as his government steps up efforts to generate investment in his country through cryptocurrencies.<\/p>\n\n\n\n
Bukele announced that the planned city in the eastern region of La Union will draw geothermal energy from a volcano and will be almost tax free, with the exception of VAT.<\/p>\n\n\n\n
“Invest here and make all the money you want. “This is a fully ecological city that works and is energized by a volcano,” Bukele said in English while speaking at a Bitcoin event in the resort town of Mizata, dressed all in white and wearing an upside-down baseball cap.<\/p>\n\n\n\n
50% of the VAT collected will be used to finance the bonds issued for the construction of the city, while the other half will be used for services like garbage collection.<\/p>\n\n\n\n
Bukele predicts public infrastructure spending of more than 300,000 Bitcoins, with the Latin American nation planning to issue its first bonds by 2022 or in 60 days.<\/p>\n\n\n\n
Last September, El Salvador became the first nation in the world to introduce Bitcoin as legal tender.<\/p>\n\n\n