Mizata: El Salvador aims to become the world's first "bitcoin city", initially funded by bitcoin-backed bonds, President Naib Bokel said on Saturday in the Central American country. Doubling your bet on using cryptocurrency to promote investment.


Speaking at a ceremony at the end of a week-long Bitcoin promotion in El Salvador, Bokel said the planned town in the eastern part of La Union would receive geothermal power from the volcano and add value-added tax (VAT). No tax will be levied except Rs.



"Invest here and make as much money as you want," Buckley said in English, dressed in all white and wearing the ultimate baseball cap, at the Beach Resort in Mizata. "It's a fully ecological city that works and is volcanic."


Half of the VAT levied will be used to fund city-issued bonds, and the other half will be used to pay for services such as garbage collection, Bokel said. Public infrastructure estimates about 300,000 bitcoins. Will cost


El Salvador became the first country in the world to adopt bitcoin as a legal tender in September.


Although Bokel is a popular president, opinion polls suggest that Salvadorin is skeptical of his love for the bitcoin, and his contradictory introduction has sparked anti-government protests.


Comparing his plan to the cities founded by Alexander the Great, Bokel said Bitcoin would be a city circular, with airports, residential and commercial areas, and a central plaza that would be bitten by the wind. It will look like a coin symbol.


"If you want the bitcoin to spread around the world, we have to make some Alexandria," said Beckell, a 40-year-old tech savvy who called himself El Salvador's "dictator" on Twitter in September.


Bokel said El Salvador planned to issue initial bonds in 2022, suggesting it would be in 60 days.


The first 10-year issue, known as the "Volcano Bond", will be worth $ 1 billion, backed by bitcoin, Samson Moo, chief strategy officer at Blockstream, a blockchain technology provider, told the gathering. And its coupon is 6.5%. He said half the money would go to the market to buy bitcoins. Other bonds will follow.


After a five-year lock-up, El Salvador will begin selling some of the bitcoins used to fund bonds to give investors an "extra coupon", Moe said, adding that the value of the cryptocurrency I will continue to grow strongly.


"It will make El Salvador the financial center of the world," he said.


The bond will be issued on the "liquid network", a bitcoin sidechain network. To simplify the process, Move said, the El Salvador government is working on securities law, and the first license to operate the exchange will be given to Bit Phoenix.


The crypto exchange Bitfinex was listed as a book runner for bonds at a presentation behind Mow.


Mow said that once 10 such bonds were issued, the $ 5 billion bitcoin would be removed from the market for many years. "And if you get 10 more countries to do these bonds, that's half the market cap of the bitcoin."