Soon to be a bitcoin hotspot, Latin America will host the only bitcoin city. El Salvador, A Latin American country, was heavily impressed by the decentralized attributes of bitcoin and made it a legal tender. You can improve your trading skills by using the right trading platform, like Immediate Connect.
The fiat currency of this country is USD. Still, due to a gigantic reliance on USD, the country faced many challenges and had to pay a huge commission for transferring remittances. These are why El Salvador made the decisive move of adopting bitcoin in such a way. Furthermore, El Salvador will construct a dedicated bitcoin city that will confer the shape of actual bitcoin. Here is a detailed overview of the central bitcoin city in El Salvador.
El Salvador and Bitcoin Corundum!
El Salvador, the mere nation to acknowledge BTC as a legitimate tender, has revealed their plans to construct a dedicated bitcoin city. The theme of this city will be structured on this legendary token. The bitcoin city will acquire funding with the help of a bitcoin bond.
The concept of a bitcoin bond is beneficial for both the citizens and government authorities. The fundamentals of bitcoin city will skyrocket the economy of this country and will attract foreign investors. Like Costa Rica, bitcoin city will acquire power from renewable energy sources like geothermal energy.
What is bitcoin city, and will Salvadorans benefit from it?
The shape of bitcoin city will resemble the shape of a coin. The centric part of this city will be holding a bitcoin symbol. Bitcoin city will be constructed near the volcano present in this country. As discussed above, the country has plans to make this bitcoin city emission-free and to accomplish these goals. They need to power the city with geothermal energy.
Geothermal energy will not merely make bitcoin city pollution-free but will also decline the marginal cost of bitcoin mining production. Chinese miners are still exploring different regions to set up their mining plants, and bitcoin cities can be an optimal option for these mining groups. Of course, bitcoin city will undoubtedly skyrocket the profitability of this business, but in El Salvador, miners have already started to use the geothermal energy of Tecapa Volcano.
Highlighting features of this city
The features of a bitcoin city that will attract foreign investors towards a bitcoin city will be emission-free and taxation-free. In short, the citizens of this city will not be subjected to any taxation structure. Even this region will be devoid of any payroll taxes. The primary goal of constructing this bitcoin city is to lure foreign investors into investing in this place.
Let’s understand the concept of bitcoin bonds!
Bitcoin bonds will be backing up bitcoin city. The budget of bitcoin bonds to construct a bitcoin city is $1 billion. The entire amount will be distrusted for two main tasks: the construction of bitcoin city and mining complexes and the second to increase of the country’s bitcoin treasures.
Citizens who invest in bitcoin bonds will receive a definite amount of return each year alongside a dividend. The minimum amount a Salvadoran can invest in bitcoin bonds is only $100, and Salvadorans will not withdraw this invested amount for five years. After five years, the country will convert some BTC back into fiat currencies. A Salvadoran’s definite interest after investing in bitcoin bonds is 6.5%.
Who will handle bitcoin bonds?
Government authorities have assigned the task of handling and managing these bitcoin bonds to block Stream Company. A Block stream will ensure that an investor can deposit any amount in bitcoin bonds, and it will lock up the invested amount for five years and offer a definite return in return. The main goal of El Salvador is to collect bitcoin bonds worth 1 billion dollars and distribute this entire amount for two significant tasks. First, the construction of bitcoin city will begin by the end of this year. The city will focus on providing profitable mining business opportunities so that foreign miners set up their mining plants.
The above-listed portion explains everything about bitcoin city and how it will use bitcoin bonds to fund the construction.
