One of the most famous Bitcoin proponents, El Salvador Nayib Bukele, is taking crypto to epic levels. He is building a Bitcoin city.
Bukele said the country’s ambitious cryptocurrency metropolis is developing well and will become the first Bitcoin trading hub to be fueled by the volcano’s geothermal energy.
Bukele posted a scale model image of a cryptocurrency metropolis to be built near the Conchagua volcano in the Gulf of Fonseca in the southeast of the Central American country.
He later said that the project would not be ‘golden’. Despite the architect’s color choices, Bitcoin City will be predominantly green and blue. Adjacent water and trees also make a nice contrast to the project.
With a beautiful view of the volcano 🥺 pic.twitter.com/mlkQ19k5AH
— Nayibbukele (@nayibbukele) May 10, 2022
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Will Crypto City Help BTC Rebound?
BTC’s price plunged to its lowest level since July 2021 last week, coincident with the release of Bitcoin City’s architectural plans and rendered visuals. The cryptocurrency is currently trading at $31,569, down 18% from the previous week.
El Salvador, the first country in the world to recognize digital assets as an official currency, has invested millions of dollars in government money in cryptocurrencies and made another purchase while BTC traded around $30,000 on Tuesday.
BTC total market cap at $598.4 billion on the daily chart | Source: TradingView.com
As a result, the International Monetary Fund (IMF) has warned Bukele, a 40-year-old former marketing executive and entrepreneur, that Bitcoin’s rapidly fluctuating price movements pose a threat to the country’s ailing economy.
South American countries have also indicated their intention to issue crypto bonds in the near future. Earlier, El Salvador’s finance minister, Alejandro Gelaya, said the Russian-Ukraine crisis was disrupting the issuance of government bonds and that the government was waiting for the right time to issue government bonds.
Bitcoin City is being constructed in a bid to stimulate economic growth and attract foreign investment. (Komodo Platform)
Buy The Deep
This week, El Salvador added 500 BTC to its reserves, worth more than $71 million. The country’s digital currency acquisition occurred at a time when the cryptocurrency market was quite stagnant.
In January, the El Salvador parliament passed 20 bills giving the government legal certainty regarding the issuance of Bitcoin-based bonds. In November of last year, the first government bonds issued in Korea attempted to raise $1 billion.
First unveiled at the Latin American Bitcoin and Blockchain conference six months ago, Bitcoin City is being built to stimulate economic growth and attract foreign investment.
Majority of Salvadorans still use the US Dollar. (WhatIsMoney.Info)
Still more USD than BTC
Meanwhile, a recent survey conducted by the US National Bureau of Economic Research found that only 20% of El Salvador’s population actually pay in Bitcoin for goods and services, while the majority continue to rely on US dollars.
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Featured image from Arquitectura Viva, chart from TradingView.com