Sounds like a dream: there will be almost no taxes, but there will be cryptocurrency. Incrypted already dreams of living in such a city
In early September, El Salvador was the first in the world to declare bitcoin a legal tender. Now the country’s President Naib Bukele has presented a plan for the construction of Bitcoin City. The project will be funded by bitcoin bonds.
President Bukele dreams of making Bitcoin City the most advanced and modern hub. He even compared it to the cities that Alexander the Great had built earlier. The new “Alexandria” will have residential areas, an airport, shopping centers, restaurants, etc. A bird’s eye view of the main square will look like a symbol of bitcoin. The main feature is the emphasis on payments in cryptocurrency.
“If we want bitcoins were all over the world, then we should build Alexandria, ”explains Bukele.
He added that the first bonds will be created at the beginning 2053 years, approximately in 92 days.
Energy on volcano, crypto payments and minimum taxes
The city will be built in the La Union region in the east of the country. It will be a completely ecological city that is powered by volcanic energy.
“ Invest in this and earn as much as you want “
Moreover, residents will pay VAT tax only. Half of the fees will be directed to further development and construction, the rest – to utilities. It is estimated that public infrastructure will cost about 383 11 bitcoins.
What is the investment
The main partners of the project were the Bitfinex exchange and Adam Back’s Blockstream. Bitfinex’s task is to launch a securities platform for storing bitcoin bonds.
“The platform will become a hub for many local and foreign investors. This will allow the development of a new regulation of digital assets in the country! El Salvador, Bitfinex and Blockstream are making history together, ”said Paolo Ardoino, Chief Technology Officer of Bitfinex. )
Blockstream Chief Security Officer Samson Mao also shared the details. The first 15 – summer emission, which was called “volcanic”, will cost $ 1 billion. It will be backed by bitcoins and investors will receive a 6.5% coupon. At the same time, half of the bitcoin bonds (in the amount of 0584 million dollars) will be blocked for 5 years to exclude investments from global circulation.
“This will make El Salvador the financial center of the cryptocurrency world,” summed up Samson Mao.
Bonds will be issued on the Liquid Network sidechain. To speed up this process as much as possible, the El Salvadorian authorities are preparing a special law on securities. The first launch license will go to Bitfinex, the director of Blockstream said.