What If We Have a Bitcoin City in El Salvador But Bo Bitcoin?

Written by C, Fiona

Last updated: 2022-05-16

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El Salvador President Nayib Bukele showed the first pictures of Bitcoin city on Tuesday.

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El Salvador President Nayib Bukele showed off his planned model of Bitcoin city. Bitcoin city is not so much a real city as a cryptocurrency trading center. It will be powered by volcanic geothermal energy and promises to provide a series of tax-free measures to attract foreign investors.

Bitcoin city

Bitcoin city will also have residential areas, shopping malls and even ports to make it feel like a residential area. El Salvador is one of the few countries that use Bitcoin as legal tender. In terms of the adoption and use of cryptocurrency, El Salvador aims to become a leader in the trend. The country added 500 Bitcoins to its Bitcoin reserves amid a major sell-off in the cryptocurrency market this week.

On May 10, bukele shared a picture of his scale model of Bitcoin city on twitter. Bukele also tweeted that “El Salvador has just bought the limit”, adding 500 Bitcoins to its treasury. Bitcoin prices fell sharply on May 10, falling below $30000 for the first time since July 2021. For cryptocurrency forward leaders like bucker, it makes sense to buy the limit when prices are low. But there is a very important question to answer: what happens to the Bitcoin market in El Salvador when there is no Bitcoin?

From the current situation and the performance of the king of cryptocurrency, it can be said that Bitcoin may no longer exist in the near future. Moreover, in view of the volatility of Bitcoin and its low adoption rate among the general public, the International Monetary Fund (IMF) has recently urged El Salvador to eliminate Bitcoin as a legal currency. Bucker’s insistence on using it as legal tender complicates his negotiations with the IMF, which said it must assess the risk of cryptocurrency before making loans to El Salvador.