El Salvador to build city financed by bitcoin and powered by geothermal

El Salvador to build city financed by bitcoin and powered by geothermal Picture of event on BitCoin City (source: Twitter account of Casa Presidencial, @PresidenciaSV)
Alexander Richter 22 Nov 2021

The President of El Salvador announced plans for "Bitcoin City" powered by geothermal energy. Expected costs are around USD 1 billion with the aim to attract foreign investors.

On November 20, in an atmosphere of ‘supershow’ in the purest American style, Nayib Bukele, President of El Salvador announced a project of ‘Bitcoin City’ , which will be installed near the Conchangua volcano, in the east of the country. According to the president’s estimates, the project will cost about 300,000 bitcoins (USD 17,454,930,000).

The event concluded a week of promotion of bitcoin in El Salvador and Bukele took the opportunity to announce that, thanks to the nearby volcano, the city would obtain geothermal energy and would not charge any taxes, except the usual value added tax (VAT). “It will legally have a municipal mayor’s office,” said the Salvadoran president.

In addition to being used by civil energy, the geothermal energy from the volcano will also serve for bitcoin mining, which consists of continuously solving complex mathematical calculations to verify monetary transactions.

To ensure that this geothermal plan can work, the Salvadoran government is already carrying out a pilot Bitcoin mining project at another geothermal power plant next to the Tecapa volcano.

The city promises to be 100% oriented towards new technologies with green areas and designed to attract foreign investment. The president spoke about digital education, technology and sustainable public transport. Comparing his plan to the cities founded by Alexander the Great, Bukele said that Bitcoin City would be circular, with residential areas, shopping centers, restaurants, a port, and an airport. Additionally, it would feature a central plaza designed to look like a bitcoin symbol from the air.

“Invest here and earn all the money you want,” Bukele told the cheering crowd in English at the closing of the Latin American Bitcoin and Blockchain Conference held in El Salvador. A Bitcoin bond offering will take place in 2022, the Salvadoran president announced. According to planned plans, 60 days after financing was ready, construction would begin.

Despite Bukele’s popularity in the country, opinion polls show skepticism on the part of Salvadorans about their president’s love for bitcoin, marked by a bumpy entry that fueled several anti-government protests.

Source: France 24