A Thread.
A City funded by Volcano and #Bitcoin .
What is El Salvador doing with Bitcoin and why is it positive for Bitcoin and everyone else involved.
Breaking down this Macro news in this thread.
A City funded by Volcano and #Bitcoin .
What is El Salvador doing with Bitcoin and why is it positive for Bitcoin and everyone else involved.
Breaking down this Macro news in this thread.
1. The President of El Salvador, @nayibbukele announced that his country will issue Bitcoin Bonds.
-How is it even possible?
-What does it mean?
-Who is helping it happen?
-Does it prove Bitcoin as a sound monetary system for a state?
-How is it even possible?
-What does it mean?
-Who is helping it happen?
-Does it prove Bitcoin as a sound monetary system for a state?
2. After making Bitcoin a legal tender of the country, the President announced he is making a Bitcoin City.
A city funded entirely by Bitcoin, as crazy as it sounds.
How will this plan actually work?
You can buy anything with Bitcoin in the city. Tax Free.
A city funded entirely by Bitcoin, as crazy as it sounds.
How will this plan actually work?
You can buy anything with Bitcoin in the city. Tax Free.
No Income tax. No Capital Gain. No Property Tax.
The ONLY tax levied would be a 10% VAT.
5% will go towards maintaining the city and 5% towards funding the funds.
But Bitcoin is not environment friendly, right?'
-The whole City will run on clean volcano energy. Period.
The ONLY tax levied would be a 10% VAT.
5% will go towards maintaining the city and 5% towards funding the funds.
But Bitcoin is not environment friendly, right?'
-The whole City will run on clean volcano energy. Period.
3. Who is making this possible?
I think there are 2 giants making it Possible.
@Excellion from Blockstream and @paoloardoino Of Bitfinex.
-The President partnered with @Blockstream's liquid network.
I think there are 2 giants making it Possible.
@Excellion from Blockstream and @paoloardoino Of Bitfinex.
-The President partnered with @Blockstream's liquid network.
So @excellion, The Chief Strategy Officer at Blockstream has said that the bonds would be called 'Volcano Bonds', worth 1 Billion Dollars, entirely backed by Bitcoin and would carry a 6.5% rate.
They aim to release more such bonds in future.
They aim to release more such bonds in future.
4. But Who ACTUALLY made it possible? I think it's @bitfinex.
Bitfinex made it possible for the government of El Salvador to operate the digitized financial instruments.
I also believe that it was also a personal endeavor of Paolo Ardoino.
Link- bitfinex.com
Bitfinex made it possible for the government of El Salvador to operate the digitized financial instruments.
I also believe that it was also a personal endeavor of Paolo Ardoino.
Link- bitfinex.com
I think Bitfinex, amongst all the entities has the most experience in international operations and regulations.
Bitfinex has secured the regulatory license and will help El Salvador issue debt security to Build the energy infrastructure Bitcoin mining via the Volcano Bonds.
Bitfinex has secured the regulatory license and will help El Salvador issue debt security to Build the energy infrastructure Bitcoin mining via the Volcano Bonds.
5. This will certainly enable new global opportunities for governments and private sector companies to raise capital and tokenize those shares.
Nayib wants El Salvador to be “financial center of the world.”
Small Central American countries are labelled tax havens of the world.
Nayib wants El Salvador to be “financial center of the world.”
Small Central American countries are labelled tax havens of the world.
Such step into crypto adoption completely changes the game for crypto investors users looking for adoption.
The current bull market in crypto has been compared to the tech bubble of the 90s.
Bitcoin city could be a gradual step towards a ‘Silicon Valley’ for crypto.
The current bull market in crypto has been compared to the tech bubble of the 90s.
Bitcoin city could be a gradual step towards a ‘Silicon Valley’ for crypto.
6. A city of investors, funds, traders looking to save taxes/find likeminded individuals and give young developers and tech individuals access to them is the new land of opportunity.
Blockstream has said it won't have issues funding the bonds due to the whales on @bitfinex
Blockstream has said it won't have issues funding the bonds due to the whales on @bitfinex
7. A contribution of 3 Bitcoins or more allows investors easy permanent resident incentives as well.
This raises could also raise a concern.
-Will the citizens be at the mercy of a volatile asset like Bitcoin?
This raises could also raise a concern.
-Will the citizens be at the mercy of a volatile asset like Bitcoin?
8. If more nations follow suit and adopt crypto in hope to boost foreign investors’ interests, the crypto-currency market would be treated as legal tender in more nations and reduce the volatility in BTC price which is de-incentivizing interests of traders.
Regardless of concerns, It is imperative to note this big step forward for different kinds of people involved in crypto.
This is an investment into the future of cryptocurrency and blockchain technology.
I can see a lot of people moving to El Salvador thanks to @nayibbukele
This is an investment into the future of cryptocurrency and blockchain technology.
I can see a lot of people moving to El Salvador thanks to @nayibbukele
Every step that Bitcoin take towards bridging gaps that still separate it and traditional finance mechanisms, is a huge step for adoption.
I am happy to see my First exchange Bitfinex leading the way in global Adoption.
I personally wish El Salvador paves the way for adoption.
I am happy to see my First exchange Bitfinex leading the way in global Adoption.
I personally wish El Salvador paves the way for adoption.
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