SAN SALVADOR–After becoming the first country to use Bitcoin as legal tender, El Salvador now said it plans to build a “Bitcoin city” at the base of a volcano, with the cryptocurrency used to fund the project.
The city will be circular to represent the shape of a large coin and will be built in the south-eastern region of La Unión, President Nayib Bukele announced.
The president said the site would take advantage of the Conchagua volcano's geothermal energy to power Bitcoin mining, which is energy intensive.
As the BBC reported, when it was announced earlier the move led to large-scale protests over fears the cryptocurrency would bring instability and inflation to the impoverished Latin American country.
Addressing a raucous crowd at a promotional Bitcoin event in the coastal town of Mizata, Bukele said the planned new city would "include everything,” according to the president.
"Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail - everything devoted to Bitcoin," the president said.
Bukele added that no income taxes would be levied in the city, only value added tax (VAT).
How Funds Will Be Used
He further said that half of the revenue gained from this would be used to "to build up the city,” while the rest would be used to keep the streets "neat and clean.”
Bukele did not provide dates for construction or completion of the city, but said he estimated that much of the public infrastructure would cost around 300,000 Bitcoins, according to the BBC. One Bitcoin is currently trading at just under $60,000 (£45,000).