El Salvadore plans to make the first in the World- ‘A Bitcoin City,’ funded by Bitcoin-backed bonds. On Saturday, El Salvadore’s President Nayib Bukele announced in the closing ceremony of a week-long event promoting Bitcoin in the country.
“If you want bitcoin to spread over the world, we should build some Alexandrias,”said Bukele, President of El Salvador
Nayib Bukele doubled down on his bet to use cryptocurrency to fuel investment in the country. The city is planned in the eastern region of La Union. The town is ecological as it will get geothermal electricity from a volcano, and hence there will be no taxes except the VAT (Value Added Tax).
Half of the VAT collected will be used to fund the bitcoin bonds issued to build the city, while the other half will carry out other essential services like Garbage collection. The Infrastructure budget of the city, as estimated by Bukele, would come to around 300,000 Bitcoins.
Earlier, in September, El Salvador became the first country to make Bitcoin a legal Tender.