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El Salvador will build Bitcoin City and buy another 500 million more BTC

A few months after adopting BTC as legal tender, the small Central American country plans to create a Bitcoin City with the help of Blockstream and Bitfinex. Separately, the country said it will buy $ 500 million more in BTC.

Bitcoin City in El Salvador

The country made headlines earlier this year by indicating it would vote to accept the primary cryptocurrency as legal tender. Despite greater backlash from global organizations such as the IMF, El Salvador authorities proceeded and legalized bitcoin in early September.

Since then, the nation has started mining BTC using volcanoes, used so-called "price drops" to buy more coins, and decided to use any profits from the appreciation of the bitcoin price to build schools and animal hospitals. domestic.

During a week-long bitcoin conference in the country, President Nayib Bukele went even further by announcing plans to build an entire cryptocurrency-centric city. It will be in the eastern region of La Union and will receive geothermal energy from a volcano. As such, the president has promised it will produce zero emissions and impose no taxes other than VAT.

“Invest here and earn all the money you want. This is a completely ecological city that works and is powered by a volcano ”.

He added that the city will be circular, similar to the cities founded by Alexander the Great, but it will also have an airport, residential and commercial areas, and a central square that is supposed to resemble the BTC symbol from above.

$ 1 billion in Bitcoin Bond

The initiative will be supported by Adam Back's Blockstream and iFinex, the company behind Tether (USDT) and Bitfinex. Samson Mow, the CTO of Blockstream, explained that all parties involved will issue a $ 1 billion "bitcoin bond", which will function as a tokenized financial instrument on the Liquid Network.

"The $ 1 billion raised will be split between an allocation of $ 500 million in bitcoin (BTC) and an infrastructure expense of $ 500 million to build Bitcoin energy and mining infrastructure in the region." - reads the Blockstream press release.

Additionally, iFinex will be involved in creating a regulatory framework for digital assets and securities to “regulate, issue and manage digitized financial instruments in El Salvador,” the company said.

Andrew Santillo

Andrea Santillo Freelancer expert writer in the field of digital finance and now also in the field of cryptocurrencies. Thanks to my linguistic knowledge I carry out research and studies on various sites and my articles are founded and deepened on these themes. Enjoy the reading

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