El Salvador President Nayib Bukele has announced that his government is planning to build an oceanside ‘Bitcoin City’ at the base of a volcano.
Bukele hopes that the tiny Central American country will be recognized as a tax haven. It can compete with other countries like the Caymans. However, trades in cryptocurrency (which has been legal currency since September) are possible.
Some critics worry that Bitcoin adoption could lead to more crime, but the President hopes to stimulate the country’s economy by establishing the Bitcoin City. This is an investor-friendly city.
This announcement was made by the Salvadorian President at Saturday’s Bitcoin Conference.
Bukele claimed that the 2022 bond issue would be entirely done in Bitcoin. He wore his signature baseball cap backwards. Construction would be started 60 days after funding was approved.
For Bitcoin mining, which is the labor-intensive and expensive solving complex mathematical equations day and night in order to confirm currency transactions, the Conchagua volcano will be the site of construction.
A pilot Bitcoin mining project is being run by the government at an additional geothermal power station near Tecapa volcano.
Conchagua is an oceanside volcano that can be found in El Salvador, Gulf of Fonseca.
Nayib Bukele is the president of El Salvador. He spoke at the end party for the ‘Bitcoin Week,’ which was held in Toepeque, El Salvador. His government plans to construct the first Bitcoin City in the world.
Nayib Bukele (El Salvador president) announced that his government plans to build an Oceanside Bitcoin City at Conchagua’s volcano base. This will be powered by the volcanic energy of Conchagua to mine cryptocurrency.
In order to draw investors and offer low taxes, the “Bitcoin City” will be located along El Salvador’s Atlantic coast.
The mayor’s police station is seen patrolling near Chivo’s digital wallet machine. Right, at Las Americas Square in San Salvador (El Salvador), Sept. 7, 2020, when every business must begin accepting Bitcoin payments, except for those that lack the technology.
To attract investment, the government will offer land and infrastructure.
Only one tax will be collected: The value-added tax. It will pay half the municipal bonds.
Bukele stated that there will be no income, property or municipal taxes in the city and zero carbon dioxide emissions.
It would aim to attract foreign investment. Bukele stated that there would be areas for residential, shopping, and restaurants, as well as a port. He spoke about digital education, sustainable transportation and technology.
Bukele told the cheering crowd, in English, “Invest here and you will make all your money,” at the close of the Latin American Bitcoin and Blockchain Conference held in El Salvador.
Nayib Bukele, President of El Salvador, plans to promote Bitcoin legal tender. This will lead to a drop in taxes across the Central American nation.
In September, demonstrators took part in protests against the Bitcoin Law. El Salvador became one of the first countries to accept Bitcoin currency as legal tender two months ago, following the Enactment of the ‘Bitcoin Law (Ley Bitcoin).
On September 15, people protested President Nayib Bukel’s policies regarding Independence Day in San Salvador. Salvadorans marched in thousands to protest President Nayib Bakele’s actions on September 15, when the country celebrated its bicentenary.
In August, Salvadoran veterans from the army and the Guerrilla marched to protest the government’s economic policies in San Salvador. Unease reigns among the citizens as they accuse the government for not providing adequate information about Bitcoin and for mistrusting them to use it.
After Bukele made it clear at the Bitcoin Conference in Miami that El Salvador was the first country to recognize Bitcoin as legal tender, Bitcoin became legal tender with the U.S. Dollar on September 7.
Bitcoin is supported by the federal government with $150 million. The government provided $30 in credit for those who used its digital wallet to encourage Salvadorans to adopt it.
Critics warn that lack of transparency in the currency could encourage criminal activity and that digital currencies’ wild fluctuations in value pose risks to holders.
Bitcoin was initially created for use outside of government financial systems. Bukele believes it will attract foreign investment and lower the cost to send money back to El Salvador from abroad.
As Bukele moves to consolidate his power, there has been increased concern among Salvadoran observers and the opposition.
The popular presidential party was given control by the voters earlier in the year. Bukele’s party remains in full control of all other government branches, as the new legislators immediately took over the Supreme Court members and attorney general of the Constitutional Chamber.
Bukele announced that Bitcoin will be legalized in Nigeria on June 5. A few months later, Bukele declared that Bitcoin would be legal tender in the country. The Bitcoin Law (Ley Bitcoin), was created and took effect September 7. Businesses are now required to accept Bitcoin payments.
As a response to Bukele’s consolidation of power, the U.S. government announced that they would move their aid away from federal agencies and towards civil society organizations.
Bukele presented a bill to Congress this month that would require foreign agencies to register for foreign funds.