El Salvador plans to build the world's first "Bitcoin City" by raising funds from $1 billion in Bitcoin bonds.
The city's development plan was unveiled by President Nayib Bukele on November 20 at a Latin American conference on cryptocurrency and blockchain.
In his opinion, the new initiative will attract investment and make El Salvador the financial center of the world.
The city will be built in the shape of a circle, and in the center they plan to erect a building in the shape of the Bitcoin logo. Geothermal volcanic energy will provide energy resources for urban infrastructure, commercial housing, airports, transport and business. To attract investors, businesses will be exempt from all taxes except value added tax (VAT).
“Invest freely in our Bitcoin city and earn as much money as you want.”
Half of the VAT collected will go to pay off bonds issued for the city's construction, and the other half will be used to pay for city utilities, Bukele said.
The bonds will be issued on the Liquid Network protocol from Blockstream, of the $1 billion, $500 million is planned to be spent on creation of a mining hub.
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