El Salvador, a Central American country, is preparing to become the first bitcoin city in the world. The move comes after El Salvador became the first country in the world to legalize bitcoin as a cryptocurrency as legal tender. President Naib Bukele announced that the goal would be achieved by raising funds through bitcoin bonds. Alexander the Great, the Macedonian king said it was his dream to build a bitcoin city, just as he built other cities. He said the city would be circular with residential areas, commercial centers, and airports.
Bukele reportedly said that the city planned in the eastern region of La Union would get geothermal power from a volcano and not levy any taxes except value-added tax (VAT). Half of the VAT levied would be used to fund the bonds issued to build the city, and the other half would pay for services such as garbage collection, Bukele said.
The president further said that country would initially issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city. Bukele also said that the city will be powered by the Conchagua volcano, which would power the mining too. As Bitcoins work by mining, there will not be a great effort for the city to work on it as the citation is favorable for them.
“El Salvador will be the financial center of the world and Bitcoin City will only charge value-added tax (VAT),” said President Naib Bukele.
Bitcoin is a decentralized digital currency without a central bank or a single administrator. The process of bitcoin work takes place in such a way that it can be sent from user to user on the peer-to-peer bitcoin network without the need for intermediaries. Transactions are verified by network nodes through cryptography and recorded in a public distributed ledger called a blockchain.