El Salvador plans to create "Bitcoin City" and buy more bitcoins using $ 500 million in advertising for $ 1 billion in tokenized contracts.

The President of El Salvador said during Bitcoin Week that he plans to build a Bitcoin town next to the volcano. The country also plans to deposit $ 1 billion in "Bitcoin bonds" on the Liquid network, of which $ 500 million will be used to buy more Bitcoin.

El Salvador is currently the only country that uses Bitcoin as a fiat currency. President Nayves Bukele said in his El Salvador Bitcoin Weekly address on Saturday evening that El Salvador will create a Bitcoin city.

"Bitcoin City" is located near the volcano on the coast of Fonseca Bay. The president said the government plans to build a power plant next to the volcano to power the city and mine for bitcoin.

According to Bukele, Bitcoin City will grow into a large city with residential and commercial areas, restaurants, airports, ports, and railroads. The entire city will be a circle (like a coin), and in the middle of the city will be a square with a huge Bitcoin symbol. There is no income, property, income tax, or income tax reporting in this city.

Bukele also said that El Salvador plans to announce $ 1 billion worth of "Bitcoin bonds" on the Liquid network, a token financial device developed by Blockstream. Of this, $ 500 million will be used to build the necessary energy and mining infrastructure, and $ 500 million will be used to purchase additional bitcoin. Based on the recent cryptocurrency price of around US $ 59,000, this could increase national reserves by less than 2,000 bitcoins.

Blockstream acknowledged in a press release that El Salvador intends to develop security laws and allow Bitfinex Securities to be a public offering.