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The President of El Salvador, Nayib Bukele, announced yesterday that he will issue a $1 billion “Bitcoin Bond” to build the world’s first Bitcoin city. In addition to value-added tax, the city will not levy any taxes, and it will be carbon neutral, most of the energy comes from geothermal resources. Bukele also announced that El Salvador will cooperate with Blockstream and use its mobile network to issue the aforementioned bonds.
El Salvador announces Bitcoin City
El Salvador and its president, Nayib B watch, Has taken the next step to further integrate Bitcoin into the lives of its citizens. Bukele announced yesterday at the closing ceremony of Labitconf, the Latin American Bitcoin Conference, that it will build the world’s first Bitcoin city by issuing a $1 billion Bitcoin bond.
The city will be located in the east of the country, and its infrastructure will be powered by geothermal energy. The city will also provide zero taxes for its citizens.In this regard, Booker statement:
Invest here and earn the money you want. This is a completely ecological city, driven by volcanoes and full of vitality.
The only tax levied by the city is value-added tax, which is used to fund urban construction through bonds and maintain public infrastructure and services. Bukele provided a glimpse into the Bitcoin city design, showing a circular model that will have a central square with the Bitcoin symbol.
Supported by Blockstream and Bitfinex
The issuance of the bond will be managed by Blockstream, a company focused on Bitcoin services, and the tokenized bond will be issued on its joint side chain Liquid blockchain. The $1 billion that the plan aims to raise will be divided into two parts. The first part will be used to purchase 500 million US dollars of bitcoin distribution, and the second part of 500 million US dollars will be used to build bitcoin-specific mining and power infrastructure.
Many users in the world can use tokenized bonds, and these users can invest small amounts or even $100. statement CSO Samson Mow from Blockstream. Using tools deployed on the Liquid network, dividends can be easily paid to bondholders.
The country must approve a new securities law and allow Bitfinex, the exchange chosen to lead the process, to organize bond issuances. This is easy for Buckler, because his party’s new ideas control most of the country’s legislative power. Therefore, this is just one form of the Bitcoin City proposal.
What do you think of the Bitcoin City proposal in El Salvador and the bond issuance to fund it? Tell us in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
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