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El Salvador Bitcoin city planned at base of Conchagua volcano

El Salvador plans to build a Bitcoin city at the base of a volcano, with the cryptocurrency used to fund the project, its president has announced.

The city will be circular to represent the shape of a large coin and will  built in the south-eastern region of La Unión President Nayib Bukele saysa.

The site would take advantage of the Conchagua volcano’s geothermal energy to power Bitcoin mining, he added.

El Salvador recently became the first country to use Bitcoin as legal tender.

The move led to large-scale protests over fears the cryptocurrency would bring instability and inflation to the impoverished Latin American country.

Fear and excitement as Bitcoin becomes legal tender
El Salvador divided over Bitcoin legal tender law

What is Bitcoin City?

Addressing a raucous crowd at a promotional Bitcoin event in the coastal town of Mizata late on Saturday Mr Bukele said the planned new city would include everything.

Residential areas commercial areas services museums entertainment bars restaurants airport port rail – everything devoted to Bitcoin the 40-year-old said.

The president who appeared on stage wearing a baseball cap backwards said that no income taxes would be  in the city only value added tax .

He said that half of the revenue gained from this would be used to “to build up the city”, while the rest would be used to keep the streets “neat and clean”.

It is costly, difficult and takes up large amounts of energy.

Mr Bukele did not provide dates for construction or completion of the city, but said he estimated that much of the public infrastructure would cost around 300,000 Bitcoins.

One Bitcoin is currently trading at just under $60,000 (£45,000).

In September, El Salvador introduced the virtual currency as a legal tender, alongside by the US dollar.

At the time, the government released a new digital wallet app, giving away $30 (£22) in Bitcoin to every citizen.

It present the measure as a way to boost economic development and jobs El Salvador has been divide the move.

Bitcoin is a controversial currency in part because its value can fluctuate significantly  it has risen and fallen dramatically over the past year.

1. U.S. to sell cryptocurrency worth $56 million after seizure in BitConnect case

On Tuesday, authorities announced that the U.S. Justice Department will sell off $56 million worth of cryptocurrency it seized as part of a case against a man who promoted crypto lending program BitConnect.

2. Crypto.com buys naming rights to Staples Center in a $700 million deal

Crypto.com, a cryptocurrency trading platform, secured a 20-year contract deal worth $700 million with the Anschutz Entertainment Group (AEG) to buy the naming rights to the Staples Center in Los Angeles, home to the Los Angeles Lakers.

The name change will take effect on Christmas Day, when the Lakers host the Brooklyn Nets.

And on Sunday, it hit an all-time high of 79 cents.

This deal with AEG may lead to additional market share for Crypto.com in the cryptocurrency space, as it will now be associated with the Lakers, one of the NBA’s top brands.

3. Lawmakers introduce a bipartisan bill to address crypto tax reporting requirement

After President Joe Biden signed the $1.2 trillion bipartisan infrastructure bill into law on Nov. 15, a bipartisan group of House representatives introduced a bill to amend a cryptocurrency tax provision on Thursday.

The provision would require each “broker,” which will mainly be exchanges, to report their cryptocurrency gains in a type of 1099 form. “Brokers” will also have to disclose the names and addresses of their customers.

But critics worry that as written, the provision’s definition of a “broker” is too broad.

The Keep Innovation in America Act, led by Reps.

4. Hillary Clinton says cryptocurrency has the ‘potential … for destabilizing nations’

On Friday, former secretary of state Hillary Clinton spoke about cryptocurrencies at the Bloomberg New Economy Forum.

Clinton mentioned that “the rise of cryptocurrency” is an area that she hopes “nation-states start paying greater attention to.”

5. Citadel CEO Ken Griffin outbids ConstitutionDAO

On Thursday, billionaire Ken Griffin, CEO of hedge fund Citadel, paid $43.2 million for a copy of the U.S. Constitution at a Sotheby’s auction. Sotheby’s estimated the copy would sell for $15 million to $20 million.

He outbid ConstitutionDAO, a group of cryptocurrency investors who planned to buy the document. The DAO raised over $40 million within days for the effort.

 

The auction set a world record for most expensive book, manuscript, historical document or printed text, according to Sotheby’s.

6. El Salvador plans to create a Bitcoin city’and raise $1 billion via a ‘Bitcoin Bond’

El Salvador plans to construct a “Bitcoin City” funded by the cryptocurrency, the country’s President Nayib Bukele announced Saturday.

The city will be built near Conchagua volcano in south eastern El Salvador and will have no taxes except from value-added tax, which is a levy on goods and services at each step along the supply chain. Construction will begin in 2022.

In addition, El Salvador plans to raise about $1 billion through a “Bitcoin Bond and The country plans to partner with Blockstream, a digital assets infrastructure company, to raise the funds, half of which will be used to buy bitcoin. The other half will go toward funding mining infrastructure, the government said.

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