El Salvador is building a volcano-powered “Bitcoin City” with no taxes
El Salvador intends to issue the world’s first sovereign Bitcoin bonds and build Bitcoin City, which will be free of income, property and capital gains taxes, President Nayib Bukele announced in the beach town of Mizata to a crowd of cheering Bitcoin enthusiasts.
El Salvador plans to issue $1 billion in tokenized U.S.-dollar denominated 10-year bonds to pay 6.5% via the Liquid Network, according to Samson Mow, chief strategy officer of Blockstream. Half of the funds of the so-called “volcano bond” will be converted to Bitcoin and the other half will be used for infrastructure and Bitcoin mining powered by geothermal energy, Mow said, while sharing the stage with Bukele.
Bitcoin City will be built near the Conchagua volcano which will provide energy for mining, Bukele said, adding that Bitcoin bond issuance will begin in 2022. The only tax in Bitcoin City will be a 10% value-added tax to fund city construction and services, he said.
Funny, I don’t seem to remember this James Bond movie?
El Salvador takes its next steps into crypto with plans for Bitcoin bonds and volcano-powered, tax-free ‘Bitcoin City’ [Michael McDonald / Bloomberg]
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November 25, 2021 at 07:49AM