If you’re unfamiliar with virtual currency, or cryptocurrency, you’re not alone. Many people do not understand how financial markets such as Bitcoin function. However, they are growing increasingly popular around the world.
One reason is the lack of financial options in very rural countries. El Salvador is one such country. Recently, the President of El Salvador, Nayib Bukele, announced his country will build the first “Bitcoin City”.
Beyond being the first city in the world to be financed by virtual currency, it will also generate all its power naturally. The power source for the new Bitcoin city will come from a nearby volcano. Both are monumentally innovative ambitions.
The president insisted the new city will have all the normal features of major cities. There will be residential neighborhoods, entertainment venues, restaurants, and even an airport. All the initial funding for the new-age city will come from Bitcoin backed bonds.
In touting the prospects for El Salvador’s new city, Bukele spoke encouragingly, “Invest here and make all the money you want,” he said. “This is a fully ecological city that works and is energized by a volcano.”
Samson Mow, a chief strategy officer for Blockchain technology, spoke about the $1 billion Bitcoin-backed bond to launch financing for the city. El Salvador had already made history early last summer.
The legislature in El Salvador announced that it had passed laws to create Bitcoin as the country’s legal tender. This new venture is another step towards helping to reestablish the Central American nation’s fledgling economy.
El Salvador is one of the poorest countries in this part of the world. In 2001, they shifted their official currency to the U.S. dollar. This new step towards virtual currency will especially help the vast majority of El Salvadorians who do not have access to financial institutions.
Over 75 percent of the legislature approved “The Bitcoin Law”. The government of El Salvador will continue to work towards educating its citizens on how to use Bitcoin. After hitting a record high value earlier in the year, Bitcoin still sits up over 90 percent.