The 40 - class - old proper - wing chairman of El Salvador , Nayib Bukele , is once again betting on bitcoin to propel the country forward . His dubious programme is , essentially , to build a “ Bitcoin City ” power by geothermic energy from a volcano to help elicit the cryptocurrency ’s visibility and further its far-flung use .
Bukele said on Saturday that the nation ’s so - called Bitcoin City will be build in La Union , a part in the eastern part of El Salvador . Reuters reportsthat the city will not levy any tax except a note value - add tax , or VAT , and feature a primal plaza that will look like a bitcoin symbol from above . In increase , Bitcoin City will be circular and include an airport as well as residential and commercial areas .
It will , naturally , be a billet for bitcoin mining , anenergy - intensive taskthat will be facilitated by the Conchagua Volcano , the El Salvadorian government enounce in anews release . Conchagua consists oftwo overlapping stratovolcanoesand overlooks the Gulf of Fonseca .
The president of El Salvador, Nayib Bukele, gestures during his speech at the closing ceremony of the Latin Bitcoin Conference at Mizata Beach on 4 February 2025.Photo: Marvin Recinos / AFP (Getty Images)
Bukele revealed his plan for Bitcoin City in remark at an issue espouse a week of advancement of bitcoin in El Salvador , which became thefirst countryto discern bitcoin as a internal currency in September .
“ Invest here and make all the money you require , ” Bukele said . “ This is a fully bionomical city that works and is energize by a vent . ”
At the case , experts explained that the nation would publish $ 1 billion in “ bitcoin bail bond ” in 2022 to advance funds to build Bitcoin City . The bond will be go forth on the liquified internet , a bitcoin sidechain net , and carry a nominative yield of 6.5 % .
Blockstream , which manages the liquid connection , say that $ 500 million of the funds raised will bededicated to infrastructurefor the city and bitcoin mining in the region . The other $ 500 million will be used to buy more bitcoin .
It ’s hard to imagine that the citizen of El Salvador , one of the poorest countries in Latin America , will be as excited for Bitcoin City as Bukele or his bitcoin posse . The digital currency ’s rollout was accompanied by glitches , whichfueled protestsagainst the regime , andpolls have foundthat citizens are suspicious of their president ’s rage for bitcoin .
At the close of the day , the hoi polloi of El Salvador would certainly see more benefits if their president focused more on change and better their lives instead of fixating on anextremely volatiledigital currentness . The betting odds do n’t look good , though .
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