El Salvador plans to build the world’s first “Bitcoin City,” which will be initially funded by bitcoin bonds, according to President Nayib Bukele on Saturday, doubling down on the Central American country’s bet on the crypto currency.
Speaking at the end of a week-long campaign to promote bitcoin in El Salvador, Bukele stated that the city planned in the country’s east would be powered by a volcano and would not levy any taxes other than the value added tax (VAT).
“We’ll start funding in 2022, and the bonds will be available in 2022,” Bukele told the cheering crowd.
Samson Mow, chief strategy officer of blockchain technology provider Blockstream, said alongside Bukele that El Salvador would first issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city.
El Salvador became the world’s first country to accept bitcoin as legal tender in September.