President of El Salvador Nayib Bukele, one of the most famous Bitcoin proponents, is elevating the cryptocurrency to a grand level. He is building a Bitcoin city.
Bukele stated that the country’s ambitious crypto metropolis is progressing splendidly and would be the first bitcoin trading hub fueled by geothermal energy from a volcano.
Bukele published images of a scale model of the crypto-powered metropolis, which will be built near the Conchagua volcano on the Gulf of Fonseca in the southeast of the Central American nation.
Afterwards, he stated that the project will not be “golden.” Despite the architect’s choice of hues, Bitcoin City will be predominantly green and blue. The neighboring water and trees will also give a lovely contrast to the project.
With a beautiful lookout in the volcano pic.twitter.com/mlkQ19k5AH
— Nayib Bukele (@nayibbukele) May 10, 2022
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Will Crypto City Help BTC To Bounce Back?
The price of BTC has plunged to its lowest level since July 2021 over the past week, coinciding with the release of the architectural plans and rendered visuals of Bitcoin City. The cryptocurrency is currently trading at $31,569, a decrease of 18% from the previous week.
El Salvador, the first country in the world to accept the digital asset as an official currency, has invested millions of dollars of government funds in the cryptocurrency, making yet another purchase on Tuesday while BTC was trading at approximately $30,000.
BTC total market cap at $598.4 billion on the daily chart | Source: TradingView.com
Consequently, the International Monetary Fund issued a warning to Bukele, a 40-year-old former marketing executive and businessman, that Bitcoin’s volatile price changes pose a threat to the country’s ailing economy.
The South American nation also declared its intention to issue crypto bonds in the near future. Previously, El Salvador’s treasury secretary, Alejandro Zelaya, stated that the Russia-Ukraine crisis impedes bond issuance and that the government is awaiting the right time to issue such bonds.
Bitcoin City is being constructed in a bid to stimulate economic growth and attract foreign investment. (Komodo Platform)
Buying The Dip
This week, El Salvador added 500 BTC to its reserves, which is equivalent to more than $71 million. The acquisition of digital currency by this nation occurred during a period of considerable market downturn for cryptocurrencies.
In January, El Salvador’s Congress passed 20 legislation that gave the government legal certainty regarding the issuance of Bitcoin-based bonds. The first bond issued by the country, in November of last year, attempted to raise $1 billion.
Bitcoin City, which was unveiled for the first time during the Latin American Bitcoin and Blockchain Conference six months ago, is being constructed in an effort to stimulate economic growth and attract foreign investment.
Majority of Salvadorans still use the US Dollar. (WhatIsMoney.Info)
It’s Still USD Over BTC
Meanwhile, according to a recent survey conducted by the National Bureau of Economic Research in the United States, barely 20 percent of El Salvador’s population actually pays for products and services with Bitcoin, while the majority continues to rely on the U.S. dollar.
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Featured image from Arquitectura Viva, chart from TradingView.com