El Salvador to build the world’s first Bitcoin City with no taxes except VAT in the oceanside at the base of a volcano. Know more about the city.
El Salvador President Nayib Bukele has announced that his government has planned to build the first-ever Bitcoin City in the world. Reports say that the concerned city will be built on the oceanside (in the eastern region of La Union) at the base of a volcano. The world’s first Bitcoin City will not levy any taxes on its people except VAT (value-added tax) and will receive geothermal power from the nearby volcano. The announcement came just 2-months after El Salvador became the first country in the world in September 2021 to adopt Bitcoin as legal tender.
While laying out the plan for the planned Bitcoin City, President Nayib Bukele said that it will be a circular city that will include residential and commercial spaces, an airport, and a central plaza that will look like a Bitcoin (BTC) symbol from the air.
The Bitcoin City in El Salvador will levy only VAT on the people. While 50% of the VAT collected will be used to build the bonds issued for building the city, the other 50% of the VAT collected will be used to pay for services, including garbage collection. A report said that it would cost around 300,000 Bitcoins (US$17.7 billion) to build the city’s public infrastructure.
Bukele had pushed for the adoption of BTC earlier by saying that it would help Salvadorians who spend around US$400 million every year on remittance commissions. Reports say that remittances account for over 20% of El Salvador’s GDP every year. In 2020, the country received around US$6 billion in remittances from El Salvadorians living abroad.