Explained: The Bitcoin City at El Salvador
The country: El Salvador needs barely any introduction now. We hear that the country is planning to develop a Bitcoin City that will carry people of crypto taste. Its President, Mr. N Bukele, announced it at the country’s recently held Bitcoin Week event. He said that the city would have Bitcoin Bond wherein he intends to pump in around 1 Billion USD in this domain.
Bitcoin City is located over the Gulf of Fonseca area that remains close to the volcano. The President’s verdict to count on the coin seems to be a progressive step in building up the economic growth in the country. It is also going to attract investors because the price for BTC remains on the higher side. Well, how about checking more on Bitcoin City in the following paragraphs. Meanwhile, if you want to explore it in detail, check it on sites
Understanding Bitcoin City And The Way It Will Benefit The Country
The city comes from the President of the nation called El Salvador. It is developed like a coin-shaped (circular) city with spaces like City Center, primarily a plaza. It will install the giant size Bitcoin symbol, claims the reports. However, the location of this city remains too attractive, and it is developed in the volcano area called Colchagua.
Therefore, the only reason to consider this place is to leverage the nation’s geothermal energy. This energy will come for both the Bitcoin City and the process of mining. As we know, BTC mining is a daunting task which demands a tremendous amount of energy, and this location has therefore had its importance.
The miners will efficiently address specific complex math-based problems and then validate the crypto coins using the technology called Blockchain. We see the country is also running a smooth venture for BTC mining, while they will do it using the geothermal power plant and the volcano area. As per the President, Bitcoin city will not pay any income or taxes.
Also, the city is planning to attract overseas investment. Thus we have multiple things in mind when planning the city claims reports. Besides, the city will have residential colonies, food joints, malls, and even an airport. It also impacts digital education and has institutes offering technology courses and sustainable energy-based programs. The President ended up saying that you invest in the city and assure higher results.
Also, the President of El Salvador is not planning to have multiple taxes within the city. However, only one tax will be seen, called VAT (Value added tax). Half of the tax will go to municipal bonds, and the rest will go to maintenance activities and infrastructure development.
The President also assured that the city would not demand any other tax, including income or property tax. Like the municipal corporation going to the mayor, the other taxes are also exempted. The most exciting thing about his saying is that this space will be a CO2-free zone, claims the media reports. However, the President is yet to share any timeline for this mighty project.
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Understanding BTC Bonds
The President also talked about a BTC bond that will pump 1 Billion USD. Half of this amount will develop energy and things like mining infrastructure around 500 USD million.
Also, a significant chunk of this amount will go into procuring BTCs. They are going to use the technology of Blockchain in managing these bonds. It is done to keep it a BTC-focused group. Also, the bond backed with tokens will be made available for people all across the globe. People can put 100 USD as their investment money, claims the statement of the government officials.
They intend to use the networks like Block Stream and Liquid that can efficiently run with a minimum payment of 100 USD to access the bond. The bond will have a five-year time as a lock-in period. Once the period matures, you can sell your coins and earn.
The investors will also enjoy additional coupons with this. In this way, you have too many things to come with Bitcoin. So, what you get to see here is just the tip of the iceberg.