The right-wing president of El Salvadoran, Nayib Bukele, is once again betting on the use of the virtual currency. His plan is to build a city powered by the power of a volcano to raise the profile of the coin and encourage its widespread use.
The country will build its so-called Bitcoin City in La Union, a region in the eastern part of El Salvadoran. The city will not impose any taxes except a VAT, and will have a central plaza that looks like a bitcoin symbol. The airport, residential and commercial areas will be included in the city.
It will be an energy-intensive task that will be done by the Conchagua Volcano, according to a news release. The Gulf of Fonseca can be seen from Conchagua.
The first country to recognize the virtual currency as a national currency in September was El Salvadoran, and that's where the plans for the city came from.
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The experts said that the country would issue $1 billion in "bitcoin bonds" in the year 2022. The bonds will be issued on the liquid network and have a nominal yield of 6.5%.
$500 million of the funds raised will be dedicated to infrastructure for the city and mining in the region, according to Blockstream. $500 million will be used to buy more digital currency.
It is hard to imagine that the citizens of El Salvador will be as excited about the new technology as the people of Bukele. Polls show that citizens are wary of their president's passion for the digital currency, and that the digital currency's launch was accompanied by glitch, which fueled protests against the government.
If the president of El Salvadoran focused more on changing and improving their lives instead of fixing on an extremely volatile digital currency, they would see more benefits. The odds don't look good.