El Salvador to Purchase $500M More Bitcoin

The small country in Central America plans to establish a Bitcoin City, just months after it adopted Bitcoin as its legal tender. Separately, the country stated that it would buy 500 million more BTC.

Bitcoin City in El Salvador

This country declared earlier this year that it would vote to recognize the primary cryptocurrency as legal tender. Despite the backlash of global organizations such as the IMF, El Salvador‘s authorities continued to legalize bitcoin in September.

The nation began mining bitcoin using volcanoes and used the “price dips”, to purchase more coins. Finally, it decided to use the potential profits from bitcoin’s appreciation to build schools and pet hospital.

President Nayib Bukele announced plans to create a whole city devoted to cryptocurrency during a week-long Bitcoin conference. It will be located in the eastern region, and will receive the geothermal energy from a volcano. The president has promised that it will emit zero carbon dioxide and will not levie any taxes, except VAT.

“Invest here, and you can make all the money that you want. It is an ecologically sound city that is powered by a volcano.

He said that the city would be circular, similar to the cities founded by Alexander The Great, but also include an airport, residential, commercial, and a central plaza, which should look just like the BTC symbol when it is viewed from the air.

$1 Billion Bitcoin Bond

Adam Back’s Blockstream, iFinex – which is the company behind Bitfinex and USDT – will support the initiative. Blockstream’s CTO Samson Mow explained that all parties will issue a $1Billion “bitcoin bond”, which will be used as a tokenized financial instrument via the Liquid Network.

According to the Blockstream statement, “The $1 billion US raised” will be divided between a $500M allocation for bitcoin (BTC) and a $500M infrastructure spending for building out energy infrastructure and Bitcoin mining infrastructure in this region.

iFinex will also be involved in the creation of a digital asset regulatory framework and securities regulatory framework in order to “regulate issue, operate, and issue digitized financial instrument in El Salvador,” stated the company.