Pro-Bitcoin El Salvador is looking to build the world’s first “Bitcoin City”

The city will be fully ecological, powered by nearby volcanoes

Nayib Bukele, the Bitcoin-friendly president of El Salvador, said at a Bitcoin investment summit on Saturday that his country plans to build the first “Bitcoin City”. The city will be located in the eastern department La Unión, between the municipalities of La Unión and Conchagua. The initial costs for developing the so-called “Bitcoin City” will be funded at the outset by the issuance of Bitcoin-backed billion-dollar bonds in 2022.

Bitcoin maxi Bukele appeared in person to deliver his address at the close of a week-long Bitcoin conference in El Salvador. His appearance was heralded by some high-budget production and fireworks. Bukele told the assembled crowd that Bitcoin City will rely on geothermal energy from nearby volcanoes, and it will be tax-free except for value-added tax (VAT). Said Bukele: “Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano.”

Half of the money raised through VAT would be used to pay off the bonds issued to fund the city’s startup costs, while the other half would be used to fund public services, said Bukele, who said 300,000 Bitcoins will be needed to complete the city’s infrastructure.