El Salvador's president plans to create a 'Bitcoin City' at the base of an active volcano

El Salvador, the first country in the world to make bitcoin an official currency, announced plans to issue $1 billion in bitcoin-backed bonds in 2022, The Wall Street Journal reported Monday. The country will issue the novel 10-year bonds in partnership with Canadian digital assets infrastructure company Blockstream, using blockchain technology. President Nayib Bukele said over the weekend that some of the bond money will go toward building a "Bitcoin City" at the base of an active volcano.

Bukele, the driving force behind El Salvador's big bet on cryptocurrency, said the oceanside Bitcoin City will get its revenue from a value-added tax, and the city will have no income, property, or capital gains taxes. "Invest here and earn all the money you want," Bukele said, in English, to a gathering of cryptocurrency enthusiasts at the Latin American Bitcoin and Blockchain Conference in El Salvador on Saturday night.

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Peter Weber, The Week US

Peter has worked as a news and culture writer and editor at The Week since the site's launch in 2008. He covers politics, world affairs, religion and cultural currents. His journalism career began as a copy editor at a financial newswire and has included editorial positions at The New York Times Magazine, Facts on File, and Oregon State University.