In news– After becoming the world’s first country to adopt bitcoins (September 2021) as legal tender in the counter, El Salvador is planning to build the world’s first ‘Bitcoin City.
- The country would initially issue a $1 billion bond backed by bitcoin to begin raising funds for the planned city.
- This Bitcoin City would be circular, with an airport, residential and commercial areas, and feature a central plaza designed to look like a bitcoin symbol from the air.
- The city planned in the east of the country would get its energy supply from a volcano and would not levy any taxes except for value added tax (VAT).
- Half of the VAT levied would be used to fund the bonds issued to build the city, and the other half would pay for services such as garbage collection.
- The country will start funding in 2022, and the bonds will be available in 2022.
- The bond would be issued on the “liquid network“, a bitcoin sidechain network.
About El Salvador-
- The Republic of El Salvador is a small coastal country in Central America.
- El Salvador’s capital and largest city is San Salvador.
- El Salvador’s population numbers 6.1 million.
- Ethnically, 86.3% of Salvadorans are mixed (mixed Native Salvadoran and European (mostly Spanish origin).
- El Salvador is also known as the land of volcanoes as well as “the little thumb of America”