[Bitcoin Now] Weak at 71 Million Won Level... El Salvador to Create Bitcoin City

Plan to Supply City Energy Through Geothermal Heat
$1 Billion Bond Issuance for Funding... Half Used to Purchase Bitcoin

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Gong Byung-sun] The leading cryptocurrency Bitcoin has slightly dropped to the 71 million KRW range. Meanwhile, the Latin American country El Salvador announced plans to build a Bitcoin city.

According to the domestic cryptocurrency exchange Upbit, as of 1:42 PM on the 22nd, Bitcoin recorded 71.69 million KRW, down 1.85% compared to the previous day. It had slightly rebounded to 74.2 million KRW the day before but is showing signs of decline again.

El Salvador announced plans to create a Bitcoin city operated based on Bitcoin. According to the US economic media Bloomberg on the 20th (local time), Nayib Bukele, President of El Salvador, said at a Bitcoin event held in Misata, El Salvador, “We will build a complete ecological city in the form of a Bitcoin city equipped with an airport, residential areas, commercial facilities, and more,” adding, “No taxes except value-added tax will be imposed in the Bitcoin city.” Half of the value-added tax will be used for city construction, and the rest will be spent on city sanitation and beautification.

The Bitcoin city plans to supply energy through geothermal power. President Bukele stated that geothermal energy from the Conchagua volcano located in La Union, a coastal city in eastern El Salvador, will be used to supply electricity needed for Bitcoin mining and the city.

El Salvador decided to issue bonds to cover the funds required for infrastructure construction of the Bitcoin city. According to Bloomberg, Samson Mow, Chief Strategy Officer (CSO) of blockchain development company Blockstream, explained, “Next year, El Salvador will issue 10-year government bonds worth 1 billion USD (approximately 1.1868 trillion KRW). Half of the funds raised through the bonds will be used for geothermal development, and the rest will be used to purchase Bitcoin.” El Salvador plans to start building the city 60 days after the funding is completed.

On September 7th, El Salvador became the first country in the world to adopt Bitcoin as legal tender. President Bukele claimed that Bitcoin could provide financial accessibility to citizens, but there has been strong opposition from the public. On the 17th of last month, about 4,000 citizens gathered in San Salvador, the capital of El Salvador, to protest against President Bukele’s policies, including the adoption of Bitcoin as legal tender.

This content was produced with the assistance of AI translation services.