„Bitcoin city“ at the base of a volcano?
Sounds like a scene straight out of an Austin Powers movie.
El Salvador’s Millenial president Nayib Bukele has some risky plans in mind, revealing that his government is soon to be building a city aimed at attracting cryptocurrency users to the country, in hopes of them investing their money there.
The infrastructural project in question is a „Bitcoin City” which is planned to be set at the base of an oceanside volcano, with the catch being that trade in the said city could only be done in the non-traceable Bitcoin cryptocurrency.
With his September 7th announcement that bitcoin had become legal tender in El Salvador, many Salvadorians took to the streets to protest the new law, as it forced business owners to accept the cryptocurrency as payment, despite its rapid fluctuations in value.
Another point of concern was the potential increase of criminal activity that usually follows these untraceable payments, but the president seems to have overlooked that and sugarcoated the newly instated form of payment with the premise of it boosting the country’s economy.
The people of El Salvador are forced to accept payment in a rapidly fluctuating currency „Bitcoin city” is planned to be built near the Conchagua volcano with the intention to harness the geothermal power to provide the city and its many bitcoin mining stations with enough sustainable energy.
Land and infrastructure are claimed to be provided for investors, but many might shy away from this offer due to El Salvador’s already unstable economical past, leaving one wondering exactly what is there to invest in there.
Naturally, the president provided answers for every question, some albeit a bit too optimistic, claiming that the city will be equipped with residential areas, malls, and a port, trying to upscale the supposed value of an investment one could make there.
As bitcoin was originally created to function outside of government-controlled financial systems, many things regarding these new laws haven’t and will not sit right with the people of El Salvador who are already struggling to make ends meet.
Sadly, those same people had put themselves in this situation, to begin with as they voted for the highly popular president and gave him full control of Congress earlier in 2021, allowing him to take full control of the government.
In response to the bitcoin law, the US government has stated that a substantial amount of financial aid will be shifted away from government control agencies and instead will be handed directly to civil society organizations which might prove to be more responsible with the money.