The MEXICO CITY-based digital currency hub of El Salvador is making waves because of its favorable business-friendly regulations, minimal government oversight, and low taxes. Crypto businesses in El Salvador have flourished because of the country’s favorable regulatory environment and its low corporate taxes. Crypto businesses such as Bitcoin City in the municipality of San Luis Talutepeque – which is also the hub for crypto in the country.
Salvadoran residents around the proposed location of Bitcoin City are already being offered up to five times their land value by investors.
El Salvador is the only country that has made Bitcoin (BTC) legal tender so far, which means crypto millionaires have been queuing up to visit. BTC is allowed for everyday purchases in El Salvador, but it is not the main reason for the growth of tourists to the country.
Crypto tourists consider Bitcoin City as an investment opportunity. The city will be built by November 2021 according to President Nayib Bukele. According to him, the country would issue BTC bonds to finance the development of the city, which will sit at the base of the Conchagua stratovolcano.
He plans to mine bitcoins from the stratovolcanic mountain using geothermal energy. In addition, residents will only have to pay taxes for goods and services since BTC will be the city’s currency. According to the government, the city will have a circular urban area with a B-shaped central plaza.
There is no wonder why crypto proponents are en route to El Salvador with such ambitious plans and promises. In the event Bitcoin City is built, it would qualify as the ideal utopia for crypto adopters looking for crypto-friendly jurisdictions with flexible regulations, little government oversight, and low taxes.
Land Around Conchagua Is Transformed Into Crypto Hubs
Bitcoin Foundation Chairman Brock Pierce is among the crypto enthusiasts seeking to get involved in the development of the city. Representatives of the Bitcoin Foundation have already met with prominent Salvadoran leaders.
Although Bitcoin Foundation is dealing with the Salvadoran government, wealthy investors from Europe and El Salvador are already making offers to locals in Conchagua.
For example, Luis Diaz, the owner of a resort named El Esp*ritu de la Monta*a (The Mountain Spirit), says he has received offers three to five times higher than the amount he paid for the land the resort occupies. Despite this, he remains adamant that he will not sell the land because The Spirit of the Mountain is a life project for him. Seeing how the state passed a law giving the government the power to seize land for public use, the government could force his neighbors to leave their homes.
Thousands of Salvadorans are unsatisfied with Bukele’s aggressive approach to BTC, regardless of whether Bukele’s BTC push will generate more opportunities and alleviate their problems.
Salvadorans often oppose Bukele’s BTC announcements as a means of expressing their dissatisfaction. This has resulted in protests on several occasions.
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Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
