El Salvador’s authorities have announced the construction of the world’s first cryptocurrency city. Residents of Bitcoin City will be able to mine cryptocurrency on the energy of the Konchagua volcano, according to Reuters.
Bitcoin City is planned to be built in the department of La Union. To do this, El Salvador will issue the world’s first Bitcoin bonds in the amount of one billion dollars. According to experts, about 300,000 bitcoins will be spent on the creation of the city’s infrastructure.
El Salvador President Nayyib Bukele noted that all Bitcoin City institutions will be dedicated to cryptocurrency. The shape of the new city will also resemble a coin. From taxes, the townspeople will pay only VAT. Half of the proceeds will go towards the development of the new city.
In the summer of 2021, El Salvador was the first in the world to recognize bitcoin as a payment unit. The money turnover in the country largely depends on the remittances that migrants transfer home from the United States. The country’s authorities are confident that bitcoins will become an alternative for those who do not have bank accounts.