El Salvador’s plans to build tax-free “Bitcoin City”

21:23, 21 November 2021
El Salvador’s plans to build tax-free “Bitcoin City” Photo:

The President of El Salvador Nayib Bukele announced that his country plans to build “Bitcoin City” which will be completely funded by Bitcoin bonds.

The news illustrates the young President’s positive attitude towards Bitcoin and cryptocurrency in general.

The country will be built in the eastern part of the country while all the energy supplies will be gotten through the nearby volcano.

“We’ll start funding in 2022, the bonds will be available in 2022,” he said in a statement.

El Salvador will issue $1 billion in tokenized 10-year bonds with a 6.5% pay.

After five years the government will begin the gradual sale of its Bitcoins and use the money to pay investors.

At the end of the 10-year cycle the percentage yield will be as high as 146%.

Bitcoin is currently witnessing a new revival as it has reached over $68,000 dollars this month.

The currency however dropped significantly after that by almost 20%.

It is estimated that the plan will allow El Salvador to become one of the important financial centers in the world.

Investors will get permanent residence and an easier way to get citizenship.

El Salvador is the first country that widely supported Bitcoin and even accepted it as a legal tender.