Nayib Bukele, President of El Salvador, the smallest country in Central America, has released the design of the Bitcoin city which is under construction. He said that this form of development is very beautiful. President Bukele shared photos on social media of a model of the city.
The city will be built near the Conchagua volcano on the Gulf of Fonseca in the southeast of the Central American country. Bitcoin City is one of the major projects of the President. Bitcoin city was first announced six months ago during the Latin American Bitcoin and Blockchain Conference.
Read | DNA Explainer: How THIS country plans to build world's first 'Bitcoin City'
This design has come to the world at a time when the crypto market is in a bearish phase and it has fallen by 50% from its high in November last year.
Construction likely to start by end of this year
El Salvador's President Nayib Bukele has predicted that construction of Bitcoin City will begin by the end of this year. Bukele shared a scale model of the crypto-powered city and some of the designs on social media.
First country to adopt bitcoin
Bukele is a Bitcoin lover. El Salvador legalised Bitcoin in September 2021. It is the first country in the world to do so. This country has invested millions of dollars in crypto. It is a different matter, however, that this design was launched at a time when the value of Bitcoin has fallen by more than 50% since its all-time high in November 2021.
Only 20% of people are using Bitcoin
On the other hand, according to data from a recent survey by the US-based National Bureau of Economic Research, only 20% of Salvadorans are using Bitcoin. Most of the people here are still dependent on the US dollar. At the same time, the International Monetary Fund (IMF) has also warned that the official adoption of Bitcoin could pose major risks to financial stability and consumer protection.
Volcano Bonds to be used in Bitcoin
The President said that the city would first be run from the Tecapa plant, then later the Conchagua plant would be started. To fund this project, El Salvador will issue bitcoin bonds worth USD 1 billion in the year 2022. That is, the beginning of this city will be with Bitcoin. Blockstream Chief Strategist Samson Mou announced on stage with the President that half of the 'Volcano Bonds' would be used in Bitcoin.
No Income tax to be paid
The President said that people living in this Bitcoin city will only have to pay VAT. That is, no income tax will be levied here either. Here Capital Gains Tax, Property Tax, Payroll Tax will be zero. However, when its construction will start and when it will be ready, it has not been decided yet.
What is bitcoin?
Bitcoin is a virtual currency, virtual means that it does not have any physical form like other currency, it is a digital currency. It is such a pose that you can neither see nor touch. It is stored electronically only. If someone has bitcoin, then he can buy goods like normal currency.
(With Agency Inputs)
