The president of El Salvador, Nayib Bukele, gestures during his speech at the closing ceremony of the Latin BitConf at the Mizata Beach, El Salvador, where he announced "Bitcoin City" on November 20, 2021.
The president of El Salvadoran announced Saturday that the country will build a "Bitcoin City" near a volcano.
The city will be built near the Conchagua volcano in south eastern El Salvadoran and will include residential and commercial areas, services, entertainment, restaurants, and an airport.
The city will have no taxes except for the VAT when construction begins.
In June of this year, the first country in the world to accept the digital currency as legal tender was El Salvador. Some of its population is against the move.
Thousands of people took to the streets in September to protest against the law because they feared it would lead to instability in the nation.
The country has launched a wallet for the digital currency.
El Salvador plans to raise $1 billion via a "Bitcoin Bond" in partnership with Blockstream, a digital assets infrastructure company. The government said half of the funds will be used to buy the digital currency, while the other half will be used for energy and mining infrastructure.
Mining is the process of creating new digital currency. The volcano in El Salvador will be used to power this.
The five-year lock-up on the bond is designed to take $500 million of the digital currency off the market.
Blockstream said that investors in the bond will get an annual special dividend.
It is still up more than 900% this year, despite the fact that it has fallen from its record high.
