New Delhi, Business Desk. Central America-based country El Salvador is planning to build the world’s first bitcoin city, which will initially be funded by bitcoin-backed bonds. El Salvador President Nayib Bukele said in a statement on Saturday that, “Bitcoin has doubled its investment in El Salvador to promote investment and use of crypto currency. Eastern Region of La Union This city to be built in the U.S. will get a new development dimension from bitcoin, and will not be taxed at all except value-added tax (VAT).” President Nayib Bukele was addressing the conclusion of a weeklong bitcoin promotion event in the country.

Apart from this, President Bukele also gave a statement saying, “Invest here and earn money as you wish. This place is completely dedicated to it.” Half of the VAT levied on bitcoin will be used to fund bonds issued to build the city, and the remaining half will be paid for services such as tax collection and garbage collection. In addition, about 300,000 bitcoins will be spent on creating the public infrastructure.

This September, El Salvador also became the first country in the world to legally recognize bitcoin. Giving information about the structure of the city, the President said that the aerial view of the city would look like bitcoin. Apart from this, airport will also be constructed in this city along with commercial and residential buildings. An initial bond issue involving bitcoin is planned in El Salvador in 2022.

Edited By: Abhishek Poddar