El Salvador continues to lead Bitcoin (BTC) adoption campaign when President Nayib Bukele announces the launch of Bitcoin City, which will be initially funded with 1 billion dollar Bitcoin bonds.
The initiative was first announced by Bukele at El Salvador's Bitcoin Week conference, which sought to celebrate the widespread adoption of Bitcoin in the country and increase citizen participation.
"I thought we had to make a big announcement on this #BitcoinWeek. So today I want to announce that we are going to build the first #BitcoinCity", President @nayib View. pic.twitter.com/7yHQLyIjBx
- Presidential House (@PresidenciaSV) November 21, 2021
In Bukele's words:
โIn #BitcoinCity we will have digital and technological education. Geothermal energy for the entire city and efficient and sustainable public transport "
The development of Bitcoin City will see the proactive participation of prominent crypto companies, including cryptocurrency exchange Bitfinex and Adam Back's Blockstream. According For Bitfinex CTO Bitfinex Paolo Ardoino, the exchange will support El Salvador's Bitcoin City initiative by launching a securities platform to hold Bitcoin bonds. He added:
"[The platform] It will soon be home to many local and foreign digital asset offerings that will develop a new digital asset regulation for the country. El Salvador, Bitfinex and Blockstream are making history together. "
The president envisions Bitcoin City becoming a fully functional city with residential areas, shopping malls, restaurants, a port, "everything to do with Bitcoin." In addition, residents will be subject only to value added tax (VAT), which according to Bukele will be used to pay the municipal bonds, and the rest for public infrastructure and city maintenance.
At the conference, Blockstream's Chief Security Officer Samson Mao cleared up The Feasibility of Obtaining the $ 1 Billion Bitcoin Bonds:
โWith Bitfinex, they have a lot of whales. I don't see any problem completing a billion dollar bonus. "
Mao also informed citizens that the $ 500 million in Bitcoin bonds will be subject to a five-year lockdown period, effectively removing the invested capital from global circulation. Furthermore, the entrepreneur explained how a 10-fold increase in similar initiatives from other countries will eventually remove half of the 21 million market capitalization of Bitcoin out of circulation.
Related: El Salvador to Build 20 'Bitcoin Schools' with Surplus Bitcoin Trust
Shortly after the widespread adoption of Bitcoin, the government of El Salvador has been reinvesting the unrealized profits in various infrastructure development projects.
In early November, Bukele announced that the surplus obtained from the state's Bitcoin Trust account will be used to build 20 new schools:
โWhen this project started, we had not made so much money in FIDEBITCOIN [state BTC Trust account] as we have done now. So we have decided to create the first 20 Bitcoin schools. "
In mid-October, the government of El Salvador reinvested $ 4 million of the profits from his Bitcoin Trust to build a new veterinary hospital in the capital, San Salvador.
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