Bitcoin City will be built in El Salvador. Eco-friendly city with only one tax

President of El Salvador Nayib Armando Bukele Ortez, speaking at a regular event aimed at popularizing Bitcoin in the country, announced a large-scale infrastructure project – the so-called Bitcoin City. It will be a city that will be located in the eastern department of the country of La Union. It will be powered by a geothermal plant located on a volcano and will not be subject to any taxes other than value added tax.

According to Bukele, Bitcoin City will become a full-fledged metropolis with residential and commercial areas, restaurants, an airport, as well as a port and rail links. There will be a square in the center of the city that will house a huge bitcoin symbol. Residents of Bitcoin City will pay one and only tax – VAT, there will be no other taxes (on income, property, capital gains or wages).

The Bitcoin City project is valued at $ 1 billion. This amount will be used to issue tokenized bonds with a maturity of 10 years and a yield of 6.5% per annum. Interestingly, of the total amount, only half will be spent directly on the construction of the city, the remaining $ 500 million will be spent on the purchase of bitcoins in the Treasury of El Salvador.

«Invest here and earn as much money as you want“, – said Bukele, announcing the project. “This is a completely ecological city that works and receives energy from a volcano.“, He added.

Half of the VAT levied will be used to pay off bonds, and the other half will be used to pay for services such as garbage collection, Bakele said. As a reminder, in September El Salvador became the first country in the world to accept Bitcoin as legal tender.