El Salvador plans to build a “Bitcoin City” backed by bitcoin bonds

The President of El Salvador, Nayib Bukele, has announced the country's plans to build a “Bitcoin City.” Built near the Conchagua volcano in southeastern El Salvador, the city will use geothermal power to support crypto mining and include all the amenities expected from a standard metropolis. The city will not impose any capital gains, income, payroll, or property taxes and will only take a value-added tax. The revenue will go towards building up the city and maintaining its streets. The city will have a circular shape, resembling a large coin, and host residential and commercial areas, an airport, restaurants, and other services. El Salvador will be issuing initial funds in 2022 to fund the project, estimating that a good portion of the public infrastructure would cost roughly 300,000 bitcoins ($17.3 billion).

Previously On...: El Salvador has been betting big on bitcoin. In September, the country became the first in the world to adopt bitcoin as legal tender. In October, they officially started mining bitcoin using power harnessed from a volcano. Along with the announcement of “Bitcoin City,” the country also unveiled a $1 billion investment in bitcoin.