- El Salvador announced its plans to launch Bitcoin City.
- This location will have zero income tax, capital gains tax, property tax, and payroll tax.
- The country partnered with Blockstream to issue $1 billion in tokenized bonds.
El Salvador recently unveiled its plants to launch what it calls Bitcoin City. According to a Twitter post, this cryptocurrency metropolitan area will be located in La Unión, an eastern municipality of the country.
Another tweet said that the country aims to offer zero income tax, capital gains tax, property tax, and payroll tax. Instead, Bitcoin City will run dependent on 10% sales tax and $1 billion in tokenized bonds.
In essence, Bitcoin City will function like a free trade zone, which offers business incentives that are commonly not offered in regular business areas.
Meanwhile, El Salvador partnered with cryptocurrency exchange Bitfinex and fintech provider Blockstream. Through the partnership, the country will issue $1 billion in tokenized bonds using Blockstream’s Liquid platform for bitcoins.
At the time of writing, Bitcoin price is at $59,328.89, according to CoinGecko. The price has bounced back from a dip to $56,000.