DNA Explainer: How THIS country plans to build world's first 'Bitcoin City'

The USD 2.22 trillion global cryptocurrency market is going bigger by the day with billionaires like Tesla CEO and SpaceX Boss Elon Musk showing his love for cryptocurrency publicly. Though many nations in the world, specially the developed countries are moving stealthily in terms of cryptocurrency, across the world, however, it's catching on much more quickly.

Now an entire city is being planned based on the cryptocurrency Bitcoin. Sounds odd, but true as it is. El Salvador the small Central American country with just 70 lakh people and the only nation to recognise Bitcoin as a legal tender, is planning to build an entire city based on the largest cryptocurrency Bitcoin.

The 40-year-old Bitcoin enthusiast President of El Salvador Nayib Bukele has announced that the country will create a 'Bitcoin City' that will stand the test of time. This was announced at a gathering of Bitcoin enthusiasts on Saturday at Bitcoin Week in El Salvador.

The 'Bitcoin City' which will be located along the Gulf of Fonseca near a volcano, will be funded with the issuance of a USD 1 billion Bitcoin Bond. But that's not all. The proposed city will virtually have no taxes except for value-added tax (VAT). El Salvador government is counting on Bitcoin for the country's economic growth and investment as Bitcoin price remains on an overall upward trajectory. 

How would be Bitcoin city?

Construction of Bitcoin city is expected to begin in 2022.

The contours of the city will be circular and in the centre will be a plaza that looks like the Bitcoin symbol.

The government will provide the land and public infrastructure and also take steps to attract investors to the city.

Bitcoin city will be built near the Conchagua volcano to take advantage of the country's geothermal energy.

The energy for running the city and supporting energy-consuming Bitcoin mining will be fulfilled by this geothermal energy.

El Salvador is already running a pilot Bitcoin mining venture at another geothermal power plant beside the Tecapa volcano.

The residents of Bitcoin city do not have to pay income, property, capital gains or even payroll taxes. 

There would be residential areas, malls, restaurants and a port in the city with zero carbon dioxide emissions

The country will have access to digital education, technology and sustainable public transportation.

Half of the VAT money that residents will pay will be used to pay the municipal bonds and the rest for municipal infrastructure and maintenance.