El Salvador continues to lead the mainstream of Bitcoin (BTC) adoption as President Nayib Bukele announces the launch of Bitcoin City, which was originally funded with $ 1 billion worth of Bitcoin bonds.
The initiative was first announced by Bukele at the Bitcoin Week conference in El Salvador to celebrate the adoption of Bitcoin in the country and increase citizen participation.
“Pensé que teníamos que dar un anuncio grande en esta #BitcoinWeek. Así que hoy quiero anunciar que vamos a construir la primera #BitcoinCity“, Mister President @nayibukele. pic.twitter.com/7yHQLyIjBx
– Casa Presidencial (@PresidenciaSV) November 21, 2021
In the words of Bukele:
“In #BitcoinCity we will have digital and technological education. Geothermal energy for the whole city and efficient and sustainable public transport “
Prominent crypto companies will actively participate in the development of Bitcoin City, including the Bitfinex crypto exchange and Adam Again’s Blockstream. follow With Bitfinex Bitfinex CTO Paolo Ardoino, the exchange will support the Bitcoin City Initiative of El Salvador by launching a securities platform for holding Bitcoin bonds. He added:
“[The platform] will soon be home to many digital asset delivery services at home and abroad that are developing new regulations for digital assets for the country! El Salvador, Bitfinex and Blockstream are writing history together. “
The President envisions Bitcoin Town becoming a fully functional city with residential areas, shopping malls, restaurants, ports and “everything about Bitcoin”. In addition, residents only pay one VAT, which, according to Bukele, is used on the city’s bonds and the rest for public infrastructure and upkeep.
Speaking at the conference was Blockstream’s Chief Security Officer, Samson Mao clear up Feasibility of Raising $ 1 Billion Bitcoin Bonds:
“With Bitfinex, they have a lot of whales. I don’t see a problem in filling out a $ 1 billion bond. ”
Mao also told citizens that $ 500 million worth of Bitcoin bonds would be subject to a 5-year lockup period, effectively taking the invested capital out of circulation around the world. On top of that, the entrepreneur also explained how similar initiatives from other countries, increasing 10x, will eventually take away half of Bitcoin’s 21 million Bitcoin market cap.
Related: El Salvador is building 20 “Bitcoin schools” with excess of the Bitcoin faith
Immediately after mainstreaming Bitcoin, the El Salvador government reinvested the unrealized revenue in various infrastructure development projects.
In early November, Bukele announced that the excess money from the state’s Bitcoin Trust account will be used to build 20 new schools:
“When this project started, we didn’t make a lot of money with FIDEBITCOIN [state BTC Trust account] like we did now. So we decided to found the first 20 Bitcoin schools. “
In mid-October, the El Salvador government reinvested $ 4 million from its Bitcoin belief earnings to build a new animal hospital in the capital, San Salvador.