El Salvador President, Nayib Bukele, announced today the launch of the country’s first “Bitcoin City,” which will purportedly be backed by BTC bonds amounting to $1 billion. Bukele first unveiled this particular Bitcoin City project at the recently held Bitcoin Week conference in El Salvador to which he claims as a celebration of the mainstream adoption of BTC in the country and to onboard even more citizens towards the booming asset class.
Bukele foresees the incoming inaugural Bitcoin City to become a fully functional city with its own social spots, shopping centers, food avenues, and a port – much like the traditional cities, the only difference being that BTC fully funds it. Furthermore, Bukele also noted that incoming residents would be subject to value-added tax (VAT), which he claims would go to funding the municipality’s bonds, city maintenance, and future public infrastructure developments.
Several prominent crypto companies are already onboard on the El Salvador President’s newest ambitious crypto-based project, according to the reports. This includes Adam Back’s Blockstream and Paolo Adroino’s Bitfinex, among many more.
The Bitcoin City would be located along the Gulf of Fonseca in proximity to a gorgeous volcano. Notably, Bukele’s announcement also noted that half of the proposed $1 billion BTC bond to support the incoming city solely based on BTC is to be used to purchase even more of the same cryptocurrency.