El Salvador plans to build the world's first cryptocurrency city. Which countries can follow his example?
The authorities of El Salvador, who in September 2021 were the first in the world to legalize Bitcoin as a means of payment, announced that they would build the first bitcoin city in the world.
It will be located at the foot of the volcano so that the residents of the city can freely mine cryptocurrency using geothermal energy. Which other countries favor digital assets?
Large-scale plans of El Salvador
Salvadoran President Naib Bukele said that the country is issuing the world's first Bitcoin-denominated bonds worth $ 1 billion, which will be used to finance the construction of the only cryptocurrency city in the world, as well as mining stations.
It is assumed that the citizens of this settlement will not pay income taxes and will be able to mine bitcoin freely by using the energy of the volcano, at the foot of which a unique settlement will be located.
The President of El Salvador has already reported that the first Bitcoins obtained through volcanic energy have been mined in the country. In general, in this state, 25% of all electricity is produced through the use of geothermal energy.
First steps...— Nayib Bukele 🇸🇻 (@nayibbukele) September 28, 2021
The first swallow
In September 2021, this Latin American country became the first country in the world to recognize Bitcoin as a legal means of payment. Now this cryptocurrency is freely circulating in the country (as, by the way, the US dollar).
In addition, an official crypto wallet was created in El Salvador, in which the government of the country was going to store Bitcoins worth $ 150 million. The authorities have already purchased 400 bitcoins worth $ 21 million for this wallet.
In addition, the president promised to distribute $ 30 in bitcoins to all citizens of the country.
El Salvador just bought 200 new coins.— Nayib Bukele 🇸🇻 (@nayibbukele) September 6, 2021
We now hold 400 #bitcoin#BitcoinDay 🇸🇻
The legalization of bitcoin in El Salvador is designed to attract foreign investment into the country and facilitate the transfer of funds for those Salvadorans who work abroad.
Who can follow the example of El Salvador?
The favor for cryptocurrencies was also declared in other Latin American countries. So, for example, in Panama there is a conversation that bitcoin should also be given the status of an official means of payment.
Now the National Assembly of the country is working on solving this issue.
Similar statements were made in Paraguay, where the new status of bitcoin may soon be announced at the state level.
The Bank for Economic Integration of Central America has spoken out in support of El Salvador's policy on bitcoin, it has created a special working group on the integration of cryptocurrencies as a means of payment in its member countries.
Among them are not only Latin American countries, but also Mexico, Taiwan, Spain and South Korea. It is possible that these countries will soon also give bitcoin a legal status.