US Bitcoiner Becomes First Resident in El Salvador’s Bitcoin City

El Salvador’s ambitious project, Bitcoin City, welcomed its first resident, an American Bitcoin enthusiast, Corbin Keegan.

The city, still under construction, aims to become a tax-free haven for international Bitcoiners. Keegan has moved to the picturesque Conchagua, La Unión, the proposed site for Bitcoin City.

Keegan’s decision to relocate to El Salvador was influenced by President Nayib Bukele’s announcement regarding the development of Bitcoin City. Eager to participate in this groundbreaking project, Keegan expedited his move to the country.

Keegan expressed his enthusiasm, saying

“I believe that this place is going to be the best city on Earth, and it is going to be better than some can imagine. I am the first bitcoiner to arrive [in Conchagua], but I do know that there are many on El Zonte beach.”

El Zonte, also known as Bitcoin Beach, was the pioneering BTC-powered community in El Salvador and played a significant role in inspiring President Bukele’s decision to adopt Bitcoin as a legal tender in September 2021.

Trees everywhere 😍 pic.twitter.com/kVUDHx2DlC

— Nayib Bukele (@nayibbukele) May 10, 2022

Integration with the Community

Despite language barriers, Keegan has already integrated into the local community. He has gained the respect and affection of Conchagua’s residents and proudly displays his support for El Salvador by wearing the nation’s symbolic shirt.

Keegan’s Twitter page reflects his location as “Conchagua, El Salvador,” demonstrating his commitment to his newfound home.

However, some of Keegan’s social media posts have been met with controversy, including positions with anti-Semitic sentiments and unfounded claims about COVID-19 vaccinations.

Keegan firmly believes in Bitcoin’s potential to revolutionize global finance. He’s dedicated to using Bitcoin for everyday transactions, stating

“Bitcoin is going to be used on a global scale, and everyone has to adapt, like El Salvador, which is the cradle.”

While he uses Bitcoin for most transactions, Keegan acknowledges that there are still places where its adoption is limited due to factors like lack of digital infrastructure and internet connectivity.

As Keegan settles into his new life in Conchagua, he joins a family involved in the local fishing industry, contributing to their daily activities.

Bitcoin City’s Grand Vision

El Salvador’s Bitcoin City, a visionary project by President Nayib Bukele, aims to be the world’s first fully ecological city. It is expected to draw power from a nearby volcano and impose only a value-added tax (VAT) on residents and businesses.

⁦@romanmartinezc⁩ and crew continuing to onboard and educate pic.twitter.com/VGhIfvQDx6

— Bitcoin Beach (@Bitcoinbeach) June 9, 2023

Half of the VAT collected will be used to finance the city’s construction through Bitcoin-backed bonds, with the other half allocated to essential services like garbage collection. The estimated cost of public infrastructure for Bitcoin City is around 300,000 Bitcoins ($17.7 billion).

Despite initial skepticism and protests, El Salvador became the first country in the world to adopt Bitcoin as legal tender in September. 

The circular Bitcoin City will feature an airport, residential and commercial zones, and a central plaza designed as a Bitcoin symbol. President Bukele envisions this project as massive, comparing it to cities founded by historical figures like Alexander the Great.

A New Financial Hub

El Salvador intends to issue the initial Bitcoin-backed bonds in 2022, with the first 10-year bond, known as the “volcano bond,” valued at $1 billion and carrying a 6.5 percent coupon. Half of this amount will be used to purchase Bitcoin on the market.

After a five-year lock-up period, El Salvador plans to sell some of the Bitcoin, providing investors with additional coupons as the cryptocurrency’s value rises. The bonds will be issued on the “liquid network,” a Bitcoin sidechain.

Samson Mow, Chief Strategy Officer of Blockstream, a blockchain technology provider, believes this initiative will make El Salvador the world’s financial center.

If more countries follow suit with similar bonds, a significant portion of Bitcoin’s market capitalization could be removed from circulation, positively affecting its value.

NB: Any Information provided is NOT FINANCIAL ADVICE. Do Your Research before making any Financial Decisions.