El Salvador announces “Bitcoin City”, a tax-free city

The President of El Salvador, Nayib Bukele, announced this Saturday night (20) the creation of the first “Bitcoin city” in the world, financed by Bitcoin-backed bonds. Bitcoin City, which will be located in the Gulf of Fonseca, between the city of La Union and Conchagua, aims to boost the use of bitcoin and thus develop the country’s economy.

“Bitcoin City is not just an idea, it will also become a reality in El Salvador. It will have residential areas, businesses, restaurants and everything around bitcoin”, said Nayib.

Bukele also stated that Bitcoin City will be built in a Conchagua volcano zone in order to harness geothermal energy for the city and also for bitcoin mining.

Bitcoin City

In partnership with cryptocurrency companies Blockstream and BitFinex, Bukele plans to issue $1 billion in 10-year bonds to finance the project.

“Invest here and earn all the money you want”said Bukele, dressed all in white and wearing a baseball cap backwards, in Mizata’s bathhouse on Saturday. “This is a totally ecological city that works and is powered by a volcano.”

“It will be a legally constituted city, it will have shops, services, museums, bars, restaurants, airport, arrivals with everything. With its own volcano, which will power the city. It will be completely circular and in the middle will have a large square. It will have the mayor of the municipality”, explained the president of El Salvador.

The country’s president assured that Bitcoin City will be a tax-free city, promising several benefits that could boost the attractions of people around the world.

“We won’t have income taxes forever. No greed taxes, zero property tax, no hiring tax, zero municipal taxes and zero CO2 emissions. The only taxes they will have in Bitcoin City is VAT, half of which will be used for payment of municipal salaries and the rest for public infrastructure and maintenance of the city.”, stated the President.

El Salvador and Bitcoin

According to the president of El Salvador, construction of the city will begin 60 days after the project has been financed. It is expected that in 2022 the bonds will be issued, which will be fully within the bitcoin ecosystem.

At the event, Blockstrem CSO Samson Mow accompanied President Nayib and highlighted that El Salvador will become the financial center of the world, this after the president announced the construction of Bitcoin City, the city that will have all the facilities that investors and “bitcoineiros” can work.

“El Salvador will be the financial center of the world. The Singapore of America”, said Samson Mow.

That was the end of Labitcoinf, a week-long event in El Salvador, which adopted bitcoin as a legal tender on September 7 of this year.#B