• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 4 days The United States produced more crude oil than any nation, at any time.
  • 10 days e-truck insanity
  • 5 days How Far Have We Really Gotten With Alternative Energy
  • 9 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
  • 8 days James Corbett Interviews Irina Slav of OILPRICE.COM - "Burn, Hollywood, Burn!" - The Corbett Report
  • 8 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 10 days Biden's $2 trillion Plan for Insfrastructure and Jobs
  • 10 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 13 days Bankruptcy in the Industry
Tesla to Lay Off Over 10% of Global Workforce

Tesla to Lay Off Over 10% of Global Workforce

Tesla is laying off over…

The AI Revolution Has a Problem: Energy

The AI Revolution Has a Problem: Energy

On the one hand, artificial…



The leading economics blog online covering financial issues, geopolitics and trading.

More Info

Premium Content

El Salvador Is Planning To Build A Tax-Free Bitcoin Utopia Using Volcanic Power

  • Pro-Bitcoin El Salvador is looking to build the world’s first “Bitcoin City.”
  • The President noted that the city will be fully ecological, powered by nearby volcanoes.
  • The costs of the tax-free crypto-utopia could be as high as 300,000 bitcoin, or  $172 billion USD.
El Salvador

Nayib Bukele, the Bitcoin-friendly president of El Salvador, said at a Bitcoin investment summit on Saturday that his country plans to build the first “Bitcoin City”. 

The city will be located in the eastern department La Unión, between the municipalities of La Unión and Conchagua. 

The initial costs for developing the so-called “Bitcoin City” will be funded at the outset by the issuance of Bitcoin-backed billion-dollar bonds in 2022.

Bitcoin maxi Bukele appeared in person to deliver his address at the close of a week-long Bitcoin conference in El Salvador. His appearance was heralded by some high-budget production and fireworks. 

Bukele told the assembled crowd that Bitcoin City will rely on geothermal energy from nearby volcanoes, and it will be tax-free except for value-added tax (VAT). Said Bukele: "Invest here and make all the money you want. This is a fully ecological city that works and is energized by a volcano."

Half of the money raised through VAT would be used to pay off the bonds issued to fund the city’s startup costs, while the other half would be used to fund public services, said Bukele, who said 300,000 Bitcoins will be needed to complete the city’s infrastructure. 

Buy A Food Basket For Those In Need Details of exactly what Bukele’s “Bitcoin city” entails are thin, but the leader hopes to attract foreign Bitcoin investment into the city. He said: "If you want bitcoin to spread over the world, we should build some Alexandrias."

Bukele briefly sketched a vision of the topography of the city and said that it will be circular, and will contain an airport and residential and commercial districts. He also said the central plaza will look like the Bitcoin symbol from above. 

In order to issue the bonds, El Salvador has struck deals with Blockstream and iFinex. iFinex will be the government's bookrunner, helping it to write new digital tokenized securities laws. The government will then give iFinex the first license in this new regulatory framework so that it can issue Bitcoin-backed billion-dollar bonds on Bitfinex securities. 

Samson Mow, CSO of Blockstream, also appeared at the event and confirmed that the bonds will be issued on Blockstream’s Liquid Network. 

From legal tender to Bitcoin City: El Salvador’s path to adoption 

El Salvador made Bitcoin legal tender on September 7 this year, though the move faced stiff criticism from the political opposition, and heavy skepticism from most residents. Ethereum founder Vitalik Buterin said El Salvador’s Bitcoin adoption was “contrary to the ideals” of crypto. 

In a blog post, Buterin elaborated: "This tactic of pushing BTC to millions of people in El Salvador at the same time with almost no attempt at prior education is reckless, and risks a large number of innocent people getting hacked or scammed. Shame on Bitcoin maximalists.”

But it hasn’t all been criticism though. Bukele’s overt Bitcoin maximalism has earned him respect among fellow maxis, like MicroStrategy CEO Michael Saylor and crypto podcaster Peter McCormack. 

Related: Texas Grid Still Vulnerable To Blackouts

Still, in spite of criticism from all corners, Bukele has blazed ahead with his Bitcoin adoption plans. On October 1, Bukele tweeted that El Salvador had started to mine Bitcoin with geothermal energy

Last month, El Salvador reported that its Bitcoin trust had a surplus of $4 million due to the currency’s rising prices. Bukele announced he would use the cash to build a pet hospital


Bitcoin wallet Strike has been one of the partners of El Salvador’s Bitcoin adoption process, and on October 14, El Salvadorans noticed a new “Pay Me in Bitcoin” feature that converts direct bank deposits into Bitcoin. 

At the end of last month, Bukele took advantage of a dip in Bitcoin prices to add 420 more Bitcoins to the country’s treasury, taking El Salvador’s total Bitcoin holdings to 1,120 BTC.

By Zerohedge.com

More Top Reads From Oilprice.com:

Download The Free Oilprice App Today

Back to homepage

Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News