El Salvador plans first 'Bitcoin City,' financed by crypto bonds - GulfToday

El Salvador plans first 'Bitcoin City,' financed by crypto bonds


President Nayib Bukele speaks at the closing party of the 'Bitcoin Week' in Teotepeque, El Salvador, on Saturday. Reuters

Gulf Today Report

Once again, the focus of the Bitcoin community this week is on El Salvador, the first country in the world to officially recognise the cryptocurrency as an official currency.

As part of “Bitcoin Week,” a series of events held in two conferences featuring a range of parties and meetings that gave industry experts and crypto-believers alike an opportunity to celebrate their loyalty to the digital token, the Bitcoin community wanted to underscore its commitment to changing the rules of the game globally.

Bitcoin Bonds

Speaking at an event marking the end of Bitcoin Week, El Salvador's President Nayib Bukele said Saturday that the country plans to build the world's first "Bitcoin City," which will initially be funded through Bitcoin bonds, increasing the Central American country's bet on the cryptocurrency.

Bukele said the planned city in the east of the country would get its power supply from Berkane and would not levy any taxes except for value-added tax.

"We will start financing in 2022, and the bonds will be available in 2022," Bukele told a crowd at the event.

BitcoinCity Nayib Bukele gestures during his speech at the closing ceremony of the LaBitConf at Mizata Beach. AFP

Speaking alongside his agent, Samson Mao, chief strategist at blockchain technology provider Blockstream, said El Salvador will initially issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city.

In September, El Salvador became the first country in the world to adopt Bitcoin as a legal currency.

Buying from the bottom

Wearing Bitcoin hats and T-shirts emblazoned with the cryptocurrency slogan "Buy from the Bottom," Bitcoin followers flocked to the Latin American country saying they weren't worried about recent price swings and that what they were doing was a long-term investment.

The focus of the week was the annual Bitcoin and Blockchain Conference in Latin America, a three-day weekend event that saw harsh criticism of the dominance of the US dollar and warnings of impending hyperinflation.

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