Categories: Market

Bitcoin crashes, El Salvador rushes to hit the bottom

El Salvador’s President Nayib Bukele said the Central American country took advantage of the 7.7% decline to buy 100 more bitcoins.

“El Salvador has just hit rock bottom on Bitcoin,” Bukele wrote on Twitter almost a week after announcing his plan to sell 1 Billion USD 10-year bitcoin bond.

El Salvador had previously bought a total of 1,100 bitcoins as of October 27. This country has recognized Bitcoin as a legal payment currency since September 7th.

El Salvador’s dollar bonds were among the worst performers in emerging markets this month, according to Bloomberg.

Bitcoin city

Mr. Nayib Bukele plans to build Bitcoin City with an investment of around 1 Billion USD.

The plan was announced by Mr Bukele at Bitcoin Week held last week to celebrate El Salvador becoming the first country to recognize the cryptocurrency.

Accordingly, Bitcoin City will be a city with all functions including: residential area, business center, restaurant, port. “Everything will revolve around Bitcoin,” said President Bukele. The city is also planned in a circular shape, from the air you can see the shape of the Bitcoin coin.

The city is said to be on the east side of the La Union area and draw geothermal energy from a volcano. In the city, residents do not have to pay any taxes other than VAT. This tax is used to pay bonds and build and maintain public infrastructure.

The President of El Salvador plans to issue a Bitcoin bond worth 1 Billion USD in 2022 to build the city. The bond issue is backed by two industry giants, the Bitfinex exchange and blockchain service company Blockstream.

Vu Hao (according to Bloomberg)

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Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.