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El Salvador President Announced The Launch Of Bitcoin City Supported by $1B BTC Bonds

By Natalie Wu | November 22, 2021

El Salvador is still making strides towards its Bitcoin (BTC) adoption, with President Nayib Bukele disclosing details of the release of Bitcoin City – which is financially supported initially by $1 billion Bitcoin bonds. 

Specifically, the development was first introduced by Bukele during El Salvador’s Bitcoin Week conference, which aims to be a celebration of Bitcoin’s mainstream adoption in the nation, as well as to amp up citizen participation.

“In #BitcoinCity we will have digital and technological education. Geothermal energy for the entire city and efficient and sustainable public transport” Bukele additionally remarked. 

The rollout of Bitcoin City will witness the proactive involvement of top-tier crypto firms, nominally crypto exchange Bitfinex and Adam Back’s Blockstream.

Per Bitfinex CTO Bitfinex Paolo Ardoino, the exchange will reportedly throw its weight behind El Salvador’s Bitcoin City project, via releasing a securities platform to be a storage for the Bitcoin bonds.

“[The platform] will soon be home to many local and foreign digital assets offerings developing new digital asset regulation for the country! El Salvador, Bitfinex, and Blockstream are making history together.”

The president reportedly has high hopes for Bitcoin City to turn into a fully functional city with residential areas, shopping centers, restaurants, a port, “everything around Bitcoin.”

Furthermore, the residents will need to pay only value-added tax (VAT), which revealed by Bukele will be channeled towards covering the municipality’s bonds, as well as and the rest for public infrastructure and city maintenance.

“With Bitfinex, they have a lot of whales. I don’t see a problem filling up a $1 billion bond.” Blockstream’s chief security officer Samson Mao offered some clarification to the feasibility of sourcing the $1 billion Bitcoin bonds.

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