El Salvador’s government is throwing more weight Behind Bitcoin. Coindesk And BBC News Report President Naib Bukel has done Unveiling Fonseca plans to build a “Bitcoin City” near a volcano along the Gulf of La Union and Conchagua. Metropolis will have its own geothermal power plant to support crypto mining, and there will be no capital gains, income, salary or property taxes, just value added tax.
The city will be shaped like a coin. While all the amenities you would expect from a city are included, the people of La Union can travel to work on new developments.
Buccaneers did not provide a timeline for the creation of the city. However, he also unveiled a $ 1 billion US “bitcoin bond” where half would be used to build energy and mining infrastructure, while the rest would be used to buy more digital currency. Samson Mou, head of strategy at bond developer Blockstream, said El Salvador would start selling crypto holdings in five years and pay additional dividends to bondholders. With an initial 6.5 percent yield, if all goes well, it could represent a significant catastrophe for the country.
The move is a huge gamble for a company with a total domestic product of just 24 24.6 billion by 2020. Buchanan’s administration relies on Bitcoin to promote economic growth, independence, and investment, but also assumes that the financial system remains in an overall upward trajectory. It is also unclear whether residents and investors will jump into the bitcoin-based city even with tax incentives. This is new territory for cryptocurrency, and it is not certain if there is enough support to help improve the project.
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