El Salvador’s President, Nayib Bukele, has announced his latest plans to make the country a Bitcoin centre, including the creation of a ‘Bitcoin City’ and the setting up of a Bitcoin Bond to raise US$ 1 billion.
According to President Bukele, the city he plans to have built near the Conchagua volcano will have residential and commercial areas as well as an airport. It will be a tax-free zone, apart from Value Added Tax and the location will allow for Bitcoin to be mined using renewable electricity generated from the volcano’s geothermal sources.
This is the latest move as part of the country’s strategy to become a leading global Bitcoin centre, which started with El Salvador’s decision in June to become the first country in the world to accept the cryptocurrency as legal tender. El Salvador also announced plans to raise US$ 1 billion in ‘Bitcoin Bonds’ with digital assets company Blockstream. According to the government, half of the funds will be used to buy Bitcoin, with the other half to be spent towards the development of energy and Bitcoin mining infrastructure. The founder and CEO of Dynasty Global Investments AG, Eduardo Carvalho, said:
"El Salvador continues to be an important experimentation ground for a transition towards a digital economy, although not without critics at home and abroad. It is a bold project by President Bukele which carries risks but can also put El Salvador ahead of most other countries in the inevitable transformation of the financial sector, and the wider economy, through Blockchain technology."