El Salvador continues to lead the way in the introduction of Bitcoin (BTC) as President Nayib Bukele announces the launch of the development of Bitcoin City, which will initially receive $ 1 billion worth of Bitcoin. will be financed from bonds. Major cryptocurrencies are proactively involved in the project, including the Bitfinex cryptocurrency exchange and Blockstream, founded by Adam Back.
The initiative was first announced by Bukele at Bitcoin Week in El Salvador.
According to Paolo Ardoino, Bitfinex’s CTO, the stock exchange is supporting the El Salvador initiative by launching a securities platform to hold Bitcoin bonds. He added confidently: “The platform will soon be home to a range of local and foreign digital devices and new digital device regulations are being developed for the country! El Salvador, Bitfinex and Blockstream are making history together.”
The President envisages Bitcoin City to be a fully operational city with residential areas, shopping malls, restaurants, a harbor and everything around Bitcoin. In addition, residents will only be charged value added tax (VAT), which Bukele says would be used to pay for municipal bonds and the rest for public infrastructure and city maintenance.
Conference Head of Security at Blockstream , Samson Mao clarified that he sees no problem in topping up the $ 1 billion Bitcoin bond fund. He said that the $ 500 million Bitcoin bond would be subject to a five-year lock-in period, effectively removing the invested capital from global circulation.
Shortly after the general spread of Bitcoin, the government of El Salvador invested its profits in various infrastructure development projects. In early November, Bukele announced that the surplus from the state’s Bitcoin Trust account would be used to build 20 new schools:
“When this project started, we didn’t earn that much money on FIDEBITCOIN yet. , as now. That’s why we decided to build the first 20 Bitcoin schools. ”In mid-October, the government of El Salvador reinvested $ 4 million in profits from the Bitcoin Trust to build a new animal hospital in the capital, San Salvador.
Bitcoin City is planned to have digital and technological education, geothermal energy for the whole city and efficient and sustainable public transport, according to the Cointelegraph
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