Last Updated on November 22, 2021 by TARUN CHAUHAN
In a rock concert-like atmosphere, El Salvador President Nayib Bukele announced that his government will build an oceanside “Bitcoin City” at the base of a volcano.
El Salvador in September became the first country in the world to adopt Bitcoin as legal tender.
No taxes in Bitcoin city
The president, who appeared on stage wearing a baseball cap backward, said that no income taxes would be levied in the Bitcoin city, only value added tax (VAT).
Half of the tax collected will be used to build the Bitcoin city and half of which will be used to keep the Bitcoin city neat and clean.
The government will provide land and infrastructure and work to attract investors.
Bukele said there would be no property, income or municipal taxes and the Bitcoin city would have zero carbon dioxide emissions.
The Bitcoin city will be circular to represent the shape of a large coin and will be built in the south-eastern region of La Unión, President Nayib Bukele said.
The site would take advantage of the Conchagua volcano’s geothermal energy to power Bitcoin mining, he added.
Mr Bukele said the planned new city would “include everything”.
“Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail – everything devoted to Bitcoin,” the 40-year-old said. Estimating the public infrastructure would cost about 300,000 Bitcoins ($17.7bn).
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“Invest here and earn all the money you want,” Mr.Bukele said at the closing of the Latin American Bitcoin and Blockchain Conference being held in El Salvador.
Critics have warned that the currency’s lack of transparency could attract increased criminal activity to the country and that the digital currency’s wild swings in value would pose a risk to those holding it.