El Salvador has already caused controversy among its residents by adopting Bitcoin as its official currency, but that doesn’t stop the local government from continuing to invest more and more in the cryptocurrency with the construction of the “City of Bitcoin” next to a volcano. Understand now how it will work.
Bitcoin City will be built in the Gulf of Fonseca, an area northwest of El Salvador, northeast of Honduras and southeast of Nicaragua that covers approximately 3,200 km². It will be shaped like a circle and will be close to the Conchagua volcano, which will provide an essential component for Bitcoin mining: energy.
The Bitcoin City announcement was made by Nayib Bukele, who is President of El Salvador, during an event in the coastal town of Mizata which you can see in the video below.
As you can see in an excerpt from the president’s speech, the city will have several attractions to encourage the development of the region, becoming a hub for Bitcoin mining with several incentives such as charging only Value Added Tax (VAT).
The city will feature residential, commercial, services, museums, entertainment, bars, restaurants, airport, port, railway areas — all dedicated to Bitcoin.