El Salvador President Bukele Intends to Build a Bitcoin City

El Salvador President Bukele

Created by TradeOr

3rd Party Analysis 22 Nov 2021

Key Takeaways:

  • El Salvador President Bukele says the country will build the world’s first Bitcoin City
  • The place will be shaped like a circle, powered by a volcano, and will collect no taxes

What’s Today’s News in Crypto?

El Salvador, the only country to adopt bitcoin as legal tender, is setting its gaze on even loftier crypto goals. The Bitcoin-friendly President Nayib Bukele said over the weekend his country is starting work on a city. Not just any city, but a Bitcoin city.

In more detail, the new place will be shaped in a circle, like a coin, and will host a large Bitcoin symbol. Further, there will be no capital gains tax, income tax, or even property tax. Instead, the entire city would be powered by a volcano.

The initial investment planned for the project is $1 billion. To cover it, El Salvador’s government will issue bitcoin-backed bonds. Half of it, or $500 million, would be used to buy more bitcoin. The other half would go for buying US dollars that would be used to cover mining costs and infrastructure expenses.

President Bukele Cheers the Bitcoin City

“Invest here and make all the money you want,” said Mr. Bukele as he announced the project to a loud audience. “This is a fully ecological city that works and is energized by a volcano,” he added. The bitcoin city is expected to make its first steps early in 2022.

In September this year, El Salvador became the first nation to legally allow bitcoin as official currency.

What’s the Price of Bitcoin?

Presently, the price of bitcoin hovers around $58,000 as traders enter another week of volatility. Over the weekend, however, bitcoin’s price shot up about 7% to peak above $60,000. Still, buying momentum was weak and, shortly after, the token slipped back under the milestone.

Last week, the orange coin logged its first losing week in almost two months. In more detail, after the original cryptocurrency notched an all-time high of $69,000 on Nov. 10, price slipped about 20% in 10 days. As a result, bitcoin reached a one-month low a couple of days ago when price dropped to $55,500.

Despite the recent slump, bitcoin traders and crypto enthusiasts, at large, remain confident the rally will resume. Moreover, they view the selloff as a lucrative opportunity to enter the crypto market at discounted levels.