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El Salvador will be building the first volcano-powered ‘Bitcoin City’ in the world. In September, this country became the first to accept Bitcoin as a legal tender.

The country has plans to build a “Bitcoin City,” with Bitcoin bonds to fund it. El Salvador’s official presidential Twitter page revealed that geothermal energy from one of the many volcanoes in the country will deliver geothermal energy to power this new city.

In an event seeking to promote Bitcoin in El Salvador, President Nayib Bukele revealed that the Oceanside city will invest in El Salvador and also build an airport, residential, and common areas having a central plaza similar to the Bitcoin symbol.

Bukele said:

“Invest here and make all the money you want. If you want Bitcoin to spread over the world, we should build some. If you want Bitcoin to spread over the world, we should build some Alexandrias.”

According to an estimate, the ‘Bitcoin’ city project is expected to cost about 300,000 BTC with the initial bonds to be issued in a few weeks time. In this city, the only tax that would be levied is the value added tax.

Samson Mow, the chief strategy officer for Blockstream (a blockchain technology provider), said that the first 10-year issue would be backed by Bitcoin and worth about US$1 billion. Half of the money from the bonds would be used to purchase Bitcoin. He said:

“This is going to make El Salvador the financial center of the world.”

After Bitcoin was approved as a legal tender bill in El Salvador, Mow said that the adoption of Bitcoin should continue in the country and beyond. He believes that with time, Bitcoin will be simple money. He said:

“I believe that Bitcoin is going to be just simply money in the future, and to get there is going to swallow up all fiat currencies — bonds, gold, everything like that. So, it’s just going to become money and it’ll just be ubiquitous.”

 

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