Soon: The World's First Bitcoin City

André François McKenzie/Unsplash

In June this year, Latin American country El Salvador made history as the first country to name Bitcoin legal tender.

Currently, millions of dollars of remittances to Latin America are being done using cryptocurrencies and this widespread use and acceptance is pushing all kinds of businesses to accept cryptocurrency as payment.

Why stop there? It's time to build the world's first 'Bitcoin City' feels El Salvador. 

Time For A Modern Alexandria

Likening the plan to cities founded by Alexander the Great, El Salvador leaders plan the Bitcoin City to be circular, with an airport, residential and commercial areas, and feature a central plaza designed to look like a bitcoin symbol from the air. 😲

Bitcoin city is being planned in the eastern region of La Union, and it would get geothermal power from a volcano and not levy any taxes except for value added tax. 

Funding A New Metropolis

Per Reuters, Samson Mow, chief strategy officer of blockchain technology provider Blockstream, clarified that the first 10-year issue, known as the "volcano bond", would be worth $1 billion. 

This would be backed by bitcoin and carrying a coupon of 6.5%. Half of the sum would go to buying bitcoin on the market, he said. Other bonds would follow.

After a five year lock-up, El Salvador would start selling some of the bitcoin used to fund the bond to give investors an "additional coupon", Mow said, positing that the value of the crypto currency would continue to rise robustly.

"This is going to make El Salvador the financial center of the world," he said.

📉📈 Despite it's notorious volatility, Bitcoin is actually more stable than certain Latin American countries’ fiat currencies, FYI.