El Salvador has announced plans to create a Bitcoin City that would focus entirely on BTC and an additional purchase of $500 million worth of BTC.
The Central American nation is collaborating with Bitfinex and Blockstream in the project, that would be located in the Eastern part of La Union.
The country’s President Nayib Bukele says that the city would be powered by geothermal power from a volcano and promises zero carbon emission. Bukele adds that his government would only charge VAT tax.
The city’s design would be circular and would feature residential and commercial developments, an airport, and a central plaza that resembles the BTC symbol.
Blockstream’s Chief Strategy Officer Samson Mow says that all the parties in the deal would issue a $1 billion bitcoin bond to finance the project. Half of the fund would be allocated to the token, while the rest would go to energy and infrastructure.
IFinex, which owns and operates Bitfinex, would reportedly create a digital asset and a regulatory framework for the digital financial instruments in the deal.
El Salvador made bitcoin a legal tender in early September, despite opposition from global organizations like the IMF.