Published: November 24, 2021
El Salvador intends to construct a Bitcoin city at the Colchagua volcano’s base. The cryptocurrency will be a funding source. El Salvador’s president, Nayib Bukele, announced that in a rock-concert-like atmosphere.
El Salvador became the first country to recognize Bitcoin as a legal tender. In addition, more than 200 new cash machines were placed throughout the country. The government also launched a new digital wallet application, providing each citizen with $30 in Bitcoin.
The planned city will be located in the south-eastern part of La Unión. It will be circular to resemble the shape of a huge coin. Furthermore, the location would use the Conchagua volcano’s geothermal energy to power Bitcoin mining.
According to the president, the new city will “include everything.” In other words, it will have museums, commercial areas, services, residential areas, entertainment, rail, port, airport. Of course, all of that will be related to Bitcoin.
What’s more, no income taxes will be levied in the city — only value-added tax (VAT) will.
While Mr. Bukele did not reveal a deadline for the city’s completion, he said public infrastructure would cost nearly 300,000 Bitcoins. As of the writing, one Bitcoin is trading at a little under $60,000.
Notably, the government is currently directing a pilot Bitcoin mining project at a geothermal power plant near the Tecapa volcano.