Bitcoin City: Salvadoran President Unveils Layout of Crypto Utopia
The Facts
Pres. Nayib Bukele of El Salvador has revealed plans for the country's yet-to-be-built Bitcoin City, posting a scale model on Twitter.
Bitcoin City will be built near the Conchagua volcano in southeastern El Salvador. Along with being a crypto mining and trading hub, it will also have residential areas, commercial areas, services, entertainment, restaurants, and an airport.
The Spin
Narrative A
Bitcoin City is a visionary plan to put El Salvador at the forefront of the digital future. It will encourage foreign investment through a progressive tax scheme whereby foreign investors will pay only value-added taxes that go toward municipal infrastructure, maintenance, and bond payments. If everything goes as planned, these incentives will spur more people to adopt bitcoin, ultimately benefiting the crypto market and El Salvador as a whole.
Narrative B
Most Salvadorans aren't as enthusiastic as Bukele about Bitcoin City. Eight months after the country introduced its own e-wallet with a $30 reward for joining, only 20% of Salvadorans are still using the service, with most opting to stick to cash. As the price of bitcoin continues to fall and its adoption by the country's populace continues to fail, Bitcoin City will need more than just tax incentives to thrive.