Published on: November 23, 2021
El Salvador, the only country to recognise Bitcoin as a legal tender, is planning to build an entire city based on the largest cryptocurrency Bitcoin
- Located along the Gulf of Fonseca , built near the Conchagua volcano to take advantage of the country’s geothermal energy— to power both the city and cryptocurrency mining
- Funded with the issuance of a $1 billion Bitcoin Bond
- Residents of Bitcoin city won’t have to pay any income, property, capital gains or even payroll taxes
- Would be built with attracting foreign investment in mind.
- Only tax collected there will be the value-added tax, half of which will be used to pay the municipal bonds and the rest for municipal infrastructure and maintenance
- The International Monetary Fund (IMF) said El Salvador should not use bitcoin as legal tender, considering risks related to the cryptocurrency.