El Salvador: Plans to build a Bitcoin city near a volcano

El Salvador plans to build a Bitcoin city near a cryptocurrency-funded volcano, according to President Nayib Bukele, according to CNBC.

The city will have shopping, services, entertainment, restaurants and an airport and will be built near the Conchagua volcano in southeastern El Salvador.

The projects will start in 2022 and the city will have no taxes other than value added tax (VAT).

It is recalled that in June, El Salvador passed a law that made it the first country in the world to accept Bitcoin as a legal tender.

But not the entire population of the country agrees with the law. In September, thousands took to the streets to protest the new law, fearing that the introduction of the cryptocurrency could lead to instability in the country.

The country has also launched a Bitcoin wallet, which allows citizens to use cryptocurrency.

El Salvador also plans to raise about $ 1 billion through a Bitcoin bond, in partnership with Blockstream. Half of the funds will be used to buy bitcoin, while the remaining $ 500 million will be used for energy and bitcoin mining infrastructure, according to the government. El Salvador plans to use geothermal energy from the volcano to power Bitcoin mining.

Investors in the bond will receive an annual special dividend, Blockstream reported.

It is noted that Bitcoin has fallen about 16% from the record of 68,990.90 dollars that it “touched” earlier in November, but still rises more than 90% this year. At this time (10.29 Greek time), according to investing.com, Bitcoin is down 2.74% in the last 24 hours and is moving at $ 57,474.