El Salvador, the most pro-crypto nation on earth, has launched a new project that aims to build a futuristic new metropolis called “Bitcoin City.”
The idea is to have an entirely new city between La Unión and Conchagua, and power it from energy harnessed from a nearby volcano. The country has partnered with development firm Blockstream to create Bitcoin bonds that El Salvador will use to fund the project.
When the city is operational, president Nayib Bukele says that there won’t be any taxes except a value-added tax (VAT). Bukele says half the VAT’s revenue would be used to fund the bonds, and the other half would be used for basic city services like garbage collection.
"Invest here and make all the money you want,” president Bukele said. “This is a fully ecological city that works and is energized by a volcano."
Based on illustrations from the Bukele’s administration, the city will be a circular and geometrically precise in nature. At its center, a large “B” for Bitcoin.
“There will be a plaza with a "B" for Bitcoin carved into it, allowing light to enter the exhibition halls of the Bitcoin museum. This is where people will learn about the evolution of money: from stones to blockchain perfection.”
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Bitcoin City aims to have both residential and commercial areas, entertainment venues, restaurants, services, an airport, a train station, and a port.
Samson Mow, chief strategy officer of Blockstream, said that the new Bitcoin bond will be launched on the company's Liquid Network. It will have the ability to give out special dividends on an annual basis generated by a staggered liquidation of BTC. He adds that the the network allows for accepting investments as small as $100, to "democratize access to the bond."
"This bond offering is something we think will be attractive to a wide range of investors ranging from cryptocurrency investors, investors seeking yield, HODLers, and ordinary people. We believe this bond has the potential to accelerate hyperbitcoinization and bring about a new financial system built on top of Bitcoin.
Today, the president of El Salvador and I have announced that they will be issuing a $1 billion US “Bitcoin Bond” on the Liquid Network. The $1 billion US raised will be split between a $500M allocation of bitcoin (BTC) and a $500M infrastructure spend for building out energy and Bitcoin mining infrastructure in the region."
