El Salvador, bitcoin, Bitcoin City, Nayib Bukele

The day before, the President of El Salvador Nayib Bukele announced his intention to create a ‘Bitcoin City’, as well as to issue the world's first souvenir bitcoin bonds.  It is assumed that the city will be built close to the Konchagua volcano, which should become the source of geothermal energy for the new settlement.

Bukele stated that there would be no taxes in Bitcoin City, with an exception of 10% VAT for the purpose of financing urban construction and services.

There are no plans to introduce any pass-through tax or property tax, reports Bloomberg.

Earlier Rusbankrot published a material about the fact that El Salvador became the first state to accept bitcoin as its official currency. However, protests of the local population began in the country, which expressed fear of such a strategy of the authorities. Many people are afraid of using cryptocurrency and simply do not know how to handle it.

However, the intentions of the country's president are more than serious. According to Samson Moe, the Chief Strategy Officer for Blockstream, Bitcoin is currently projected to rise, which should hit $ 1 million over the next five years. Moe also added that the outlined plans will make El Salvador the ‘financial center of the world’ and a ‘Singapore of Latin America’.