Bobos & Wojaks

Get rich or die tryin

El Salvador Plans To Create A ‘Bitcoin City’ At The Base Of One Of Its Volcanoes.

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El Salvador’s President, Nayib Bukele, has declared plans to develop an oceanside ‘Bitcoin City’ at the base of a volcano.

Bukele intends to put the little Central American country on the map as a new tax haven, competing with the Cayman Islands, but with the added selling point that transactions can be done entirely in non-traceable Bitcoin – which has been legal money since September.

While some detractors worry that the country’s adoption of Bitcoin may encourage greater criminal activity, the president hopes that the investor-friendly Bitcoin City will help the country’s economy.

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The declaration was made by Salvadoran President Salvador Allende on Saturday night at a Bitcoin convention.

Bukele, who was wearing his distinctive backwards baseball cap, indicated that a bond offering would take place exclusively in Bitcoin in 2022. Construction would begin 60 days after financing was approved.

The city will be built near the Conchagua volcano to make use of geothermal energy, which will be used to power both the city and Bitcoin mining, which is the energy-intensive process of solving complicated mathematical computations day and night to validate money transactions.

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Conchagua volcano is located on the Gulf of Fonseca in northeastern El Salvador.

The government would offer land and infrastructure while also attempting to recruit investors.

The only tax levied will be the value-added tax, half of which will be used to pay municipal bonds and the other half to fund municipal infrastructure and maintenance.

Bukele stated that there would be no property, income, or municipal taxes and that the city would emit no carbon dioxide.

The city would be built with attracting foreign investment in mind. There would be residential areas, malls, restaurants and a port, Bukele said. The president talked of digital education, technology and sustainable public transportation.

‘Invest here and earn all the money you want,’ Bukele addressed the roaring throng as the Latin American Bitcoin and Blockchain Conference in El Salvador came to a close.
Bitcoin has been legal cash alongside the US dollar since September 7, when Bukele revealed via video message at a Bitcoin conference in Miami that El Salvador will be the first government to legalise the cryptocurrency.

The government is investing $150 million in Bitcoin. To encourage Salvadorans to utilise it, the government provided $30 in credit to those who used its digital wallet.

Critics have cautioned that the currency’s lack of transparency may bring more criminal activity to the country and that the digital currency’s rapid fluctuations in value may endanger individuals who hold it.

Bitcoin was designed to function outside of government-controlled banking institutions, and Bukele believes it will help bring international investment to El Salvador while also making it cheaper for Salvadorans living abroad to transfer money home to their family.

As Bukele moves to solidify control, the Salvadoran opposition and other observers have become increasingly concerned.

Earlier this year, voters awarded the president’s party control of Congress. The new legislators promptly changed the members of the Supreme Court’s constitutional chamber and the attorney general, putting Bukele’s party firmly in control of the other branches of government. 

Bukele decided on June 5 that Bitcoin would be legally recognised as legal money in the country. A few months later, the Bitcoin Law (Ley Bitcoin) was established, and since then, companies have been compelled to accept Bitcoin for all payments. 

In response to Bukele’s consolidation of power, the United States announced that it would move aid away from government institutions and toward civil society organisations.

Bukele submitted a proposal to Congress this month that would require organisations receiving foreign funds to register as foreign agents.