The first country that will make bitcoin a legal tender is none other than El Salvador. It is looking forward to making a bitcoin city that will be working through mining bitcoins. The President of El Salvador made the announcement recently, and it is all set to make bitcoin a legal tender inside the country’s geographical boundaries.
The bitcoin city expected to occur in El Salvador will be located alongside the Gulf of Fonseca that has a volcano nearby, and it will be getting funding from issuing a one-billion-dollar bond.
The announcement about building the bitcoin city was made in an event named bitcoin week which took place in El Salvador itself. Many enthusiasts believe in cryptocurrencies and have faith that this move will earn a lot of money for investors and traders.
Due to the increasing trend of bitcoin, the government of El Salvador is placing massive faith in cryptocurrency. It is one of the most prominent reasons why the government believes that bitcoin will support and spur its economic growth. It is likely to create many investment opportunities on BitIQ The Official website.
These predictions are made because bitcoin prices have continued on an upward trend for a long time. According to the reports of the event in El Salvador, the country will make the bitcoin city in a circular shape. And it will design a plaza just right in the centre of the city that will symbolise bitcoin.
As mentioned, the city will be near the volcano, and due to the enormous faith of El Salvador in the bitcoin mining venture, it is already running a geothermal power plant near the Tecapa Volcano. But it is not just going to power the city, it will also power the mining of bitcoin.
Crypto mining is nothing else but solving mathematical calculations every day. Therefore, the President has disclosed that cryptocurrency mining will occur during the daytime. During the night, the coins will be verified and added to the blockchain network.
The President of El Salvador disclosed that the city would not have to pay any income, capital gains, property or even payroll taxes. The city will be running entirely on the idea of foreign investment in mind, and therefore, it is ultimately a new thing in the world. Furthermore, it is not only going to be a city for the production of new cryptocurrencies. There will also be new innovations that mean bitcoin will help industries such as malls, restaurants and residential areas. There is also going to be a port for the people to use in the bitcoin city.
In addition to all of this, the city will also have access to digital education and sustainable Mummy transportation. It has been placing a significant focus on technology and development and, therefore, the basic idea to invest in the bitcoin city means you can earn all the money you need and want.
The President also said that there would be only one tax, which will be value-added tax (VAT). Money raised will be used in two different places. First of all, the municipal bonds use the first portion, and the rest will be invested in the municipal infrastructure and its maintenance. There is not going to be any property, income or municipal tax. And in addition, the city is aiming to be carbon neutral.
However, there was no fixed timeline given by El Salvador’s President to create the bitcoin city. Just that the President is looking forward to investing a US$1 billion bitcoin bond into the funding of the bitcoin city. Half of which will be used in building the energy and mining infrastructure and the rest will be employed for the country to purchase more bitcoins.
The issuance of the bonds based on bitcoin would be driven and managed by Blockstream, which focuses on providing bitcoin services. Also, the bitcoin city will not only provide its services to future investors, but it will also facilitate investments for small investors. Anyone from across the globe can invest an amount of as low as a hundred dollars in bitcoins.
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