El Salvador , New crypto currency capital
El Salvador's president has revealed plans to establish a Bitcoin city at the base of a volcano, with the cryptocurrency being used to pay the project.
The city would be round in design, resembling a giant coin, and will be developed in La Unión's south-eastern region, according to President Nayib Bukele.He went on to say that the location would use the Conchagua volcano's geothermal energy to fuel Bitcoin mining.El Salvador would become the first country to legalize Bitcoin as legal currency recently.Fears that the Bitcoin will bring chaos and inflation to the underdeveloped Latin American country prompted massive protests.
Mr Bukele told a rowdy crowd at a promotional Bitcoin event late Saturday in the coastal village of Mizata that the planned new city will 'include everything. 'Everything is devoted to Bitcoin,' the 40-year-old said. 'Residential areas, commercial areas, services, museums, entertainment, bars, restaurants, airport, port, rail - everything is devoted to Bitcoin.' president, who wore a baseball cap backwards on stage, stated that there would be no income taxes in the city, only a value added tax (VAT).
He stated that half of the proceeds would be utilised to 'build up the city,' with the remainder going to keep the streets 'neat and tidy.'
Bitcoin and other cryptocurrencies are mined by solving complicated mathematical problems with modern computers. It's expensive, time-consuming, and energy-intensive.
Mr Bukele did not specify a timeline for the city's building or completion, but he did say that much of the public infrastructure would cost roughly 300,000 Bitcoins. the time of writing, one Bitcoin is worth little under $60,000 (£45,000). EL Salvador made the virtual money legal tender alongside the US dollar in September.
At the time, the government launched a new digital wallet software, providing each resident $30 (£22) in Bitcoin. In addition, more than 200 new cash machines have been erected throughout the country.The proposal was portrayed as a way to boost economic development and job creation, but it has divided El Salvador.It means that, whenever practicable, businesses must now accept digital currency as payment.
Bitcoin is a contentious currency in part because its value fluctuates a lot - it has gone up and down substantially in the last year.