El Salvador builds first ‘Bitcoin City’ with the help of BTC bonds | Crypto News

Many Salvadorans are skeptical of Bitcoin and its controversial launch has fueled anti-government protests.

El Salvador plans to build the first “Bitcoin City”, the first of its kind in Bitcoin-backed bonds, President Nayib Bukele says, to double his investment to use cryptocurrency to spend money in Central America.

Speaking at an event to close a week-long Bitcoin upgrade in El Salvador, Bukele said a city planned in the eastern part of La Union would receive geothermal power from the volcano and not file taxes other than the value added tax (VAT).

“Call here and make all the money you want,” Bukele, dressed in white and wearing a baseball cap on his back, told Mizata on Saturday. “This is a cosmopolitan city that operates and is reinforced by an active volcano.”

Half of the VAT paid will be used to finance the construction of the city, and the other half will pay for services such as garbage collection, said Bukele, estimating that human infrastructure will cost about 300,000 Bitcoins ($ 17.7bn).

El Salvador in September became the first country in the world to adopt Bitcoin as a legal tender.

Although Bukele is a prominent president, opinion polls show that the people of Salvador are skeptical of his love of Bitcoin, and his brutal launch has fueled anti-government protests.

Comparing its policy with the cities established by Alexander the Great, Bukele said that Bitcoin City will be round, with airport, residential and commercial areas, and have intermediate spaces designed to look like Bitcoin signals from the sky.

“If you want Bitcoin to spread globally, we have to build Alexandria,” said Bukele, a 40-year-old professional who in September called himself the “dictator” of El Salvador on Twitter in a humorous joke.

“El Salvador is planning to roll out the first building by 2022,” Bukele said in 60 days.

‘Liquid network’

Samson Mow, chief program officer of blockchain technology providers Blockstream, told the gathering that the first 10-year issue, called “lava binding”, would be worth $ 1bn, backed by Bitcoin and carrying 6.5 percent coupons. Half of that money goes to buy Bitcoin in the market, he said. Other bindings would follow.

After a five-year closure, El Salvador has begun selling some of the Bitcoin used to finance the fundraiser to give the money a “extra coupon”, Mow said, setting the price of cryptocurrency will continue to rise sharply.

“This will make El Salvador a world economic center,” he said.

When the connection is delivered to the “liquid network”, the Bitcoin sidechain network. To guide the process, the El Salvador government is working on a security law, and the first permit to use the exchange will go to Bitfinex, Mow said.

Crypto Exchange Bitfinex was listed as the book developer on Mow’s back screen.

When 10 such bonds are issued, $ 5bn in Bitcoin will be removed from the market for a number of years, Mow said. “And if you get 10 other countries to do these bonds, then half of the Bitcoin market right now.”

“The theory of the game” on the bond gave the first El Salvador supplier the opportunity, Mow argued, saying: “If Bitcoin on the five-year mark reaches $ 1m, which I think will, it will sell Bitcoin in two installments and return the same. $ 500m.”