El Salvador plans to build world’s first Bitcoin City: Nayib Bukele
El Salvador intends to issue the world’s first sovereign Bitcoin bonds and build Bitcoin City, which will be free of income, property and capital gains taxes, President Nayib Bukele announced in the beach town of Mizata to a crowd of cheering Bitcoin enthusiasts.
El Salvador plans to issue $1 billion in tokenised US-dollar denominated 10-year bonds to pay 6.5 per cent via the Liquid Network, according to Samson Mow, chief strategy officer of Blockstream. Half of the funds of the so-called “volcano bond” will be converted to Bitcoin and the other half will be used for infrastructure and Bitcoin mining powered by geothermal energy, Mow said, while sharing the stage with Bukele.
After a five-year lock-in period, the government will begin to sell its Bitcoins and pay an additional dividend to investors, Mow said. He told Bloomberg News on Thursday about his proposal. Blockstream models show at the end of the 10th year of the bond, the annual percentage yield will be 146 per cent due to Bitcoin’s projected appreciation, Mow said, forecasting Bitcoin will hit the $1 million mark within five years.
With Thanks Refrence to: https://www.business-standard.com/article/international/el-salvador-plans-to-build-world-s-first-bitcoin-city-nayib-bukele-121112200029_1.html
