![](https://www.nextias.com/ca/wp-content/uploads/2023/07/6569898Screenshot.png)
In Context
- El Salvador is planning to build an entire city based on the largest cryptocurrency Bitcoin.
- In September 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender.
About El Salvador’s Bitcoin city
- Bitcoin city will be laid out in a circle (like a coin) and there will be a plaza in the city centre that will be host to a huge Bitcoin symbol.
- There would be residential areas, malls, restaurants and a port in the Bitcoin city.
- In addition, the country will have access to “digital education, technology and sustainable public transportation.
- The city would be funded with the issuance of a $1 billion Bitcoin Bond.
- The city will be located along the Gulf of Fonseca near a Conchagua volcano to take advantage of the country’s geothermal energy— to power both the city and cryptocurrency mining (an energy-consuming process of solving complex mathematical calculations day and night to verify and add crypto coins to the Blockchain network).
- Significance:
- The city would be built with attracting foreign investment in mind.
- The move aims to spur the country’s economic growth and investment
What are Bitcoin Bonds?
- It represents the start of a reformation of capital markets, built on Bitcoin and layer-2 technologies like the Liquid Network.
- Dividends can be distributed to investors instantly, with built-in cryptography to maintain confidentiality.
- Bonds can be traded 24/7 with other assets like stable coins, using protocols that help eliminate the need for trust.
- Dividends will be paid easily to bondholders using tools deployed on top of the Liquid network.
El Salvador
Image Courtesy: Britannica Bitcoin
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Source: IE
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