The President of El Salvador: intends to issue 1 billion US dollars in Bitcoin bonds and build a Bitcoin city
The El Salvador parliament passed the LeyBitcoin bill on June 9 this year; Bitcoin (BTC) officially became the country’s legal currency on September 7, and merchants must not refuse to accept Bitcoin. In addition to becoming the first country in the world to include Bitcoin as a legal currency, President Nayib Bukele recently announced a super crazy plan again, intending to issue a bitcoin bond worth 1 billion U.S. dollars, and plans to build a super avant-garde in the east. The Bitcoin City (Bitcoin City) has come to attract foreign investment. Next, I will give you a closer introduction~
El Salvador intends to issue bitcoin bonds
El Salvador plans to issue $1 billion worth of “Bitcoin Bonds” on the Liquid Network developed by Blockstream. According to Blockstream’s official blog , $500 million of the Bitcoin bond issuance will be used to build energy and bitcoin. Bitcoin mining infrastructure, another 500 million US dollars will be used to buy Bitcoin.
We're excited to share our collaboration with the Republic of El Salvador for the #BitcoinBond, an issuance of $1B USD in tokenized bonds on @Liquid_BTC for acquiring #bitcoin and building out energy and mining infrastructure in El Salvador. ?⚡️ https://t.co/rDaCDdewSo pic.twitter.com/3VAC6MISSl
— Blockstream (@Blockstream) November 21, 2021
In addition, Saskatchewan has also cooperated with Bitfinex to formulate relevant regulations for tokenized securities.
We're excited to share our collaboration with the Republic of El Salvador to build the digital securities infrastructure and exchange that will allow the Government to issue their bond offering to build their #bitcoin mining infrastructure. ?#BitcoinBondhttps://t.co/pdlBG9qevU pic.twitter.com/gsfcfSMyU1
— Bitfinex (@bitfinex) November 21, 2021
Build a Bitcoin City
The city of Bitcoin will be located near a volcano in the Gulf of Fonseca. President Nayib Bukele: “The government plans to build a power plant next to the volcano. The city will mainly rely on volcanic geothermal power generation in the future and provide energy for Bitcoin mining.”
The Bitcoin City will have residential areas, commercial areas, restaurants, airports, ports, and railway services. According to the current plan, it will be a city with a healthy life function. The city will be planned as a circle, and a huge bitcoin symbol will be placed in the central square. Also because the city mainly relies on geothermal power generation, it can achieve zero carbon dioxide emissions.
Since the President hopes that the City of Bitcoin can attract a large amount of foreign investment, he promised that living in the City of Bitcoin in the future will enjoy the following benefits:
(Source: https://twitter.com/APompliano/status/1462587377549991945/photo/1)
- 0% income tax
- 0% capital gains tax
- 0% property tax
- 0% payroll tax
- 0% municipal tax
- 0% CO2 emissions
Living in the city can be exempted from the above taxes, but it should be noted that “citizens are required to pay 10% of value-added tax”, 50% of the value-added tax is used to repay the Bitcoin bond; the remaining 50% will be used as a public service fund.