In a fun contrast for this week’s Dispatch, El Salvador is taking a very different approach to crypto than the Indian government (read on for that story). El Salvador’s President, Nayib Bukele, announced plans to create a Bitcoin city in the Central American state.
What’s a Bitcoin City: That’s a great question and we’re not sure President Bukele really knows what it is yet either. But here’s what we do know…
- The city will sit at the base of a volcano and energy from the volcano will be used to power a large scale Bitcoin mining operation.
- If mining’s not your thing, the city will also feature bars and restaurants, residential and commercial zones, and yes, a large Bitcoin symbol in the middle that will be visible from airplanes.
Probably most attractive to prospective residents, the city will not charge residents or businesses income tax, capital gains tax, property tax or payroll tax. Instead they’ll generate all revenue from a 10% value add tax.
How will they pay for it: In Bitcoin, of course! El Salvador struck a deal with Bitfinex to issue a billion dollar bond that will fund construction of the mining operation.
Zoom out: The Bitcoin City still feels like a bit of a fantasy but if Bukele pulls it off, this could be a cryptocurrency investor’s paradise.