Bitcoin City: El Salvador's Volcano Bond Dream Stalls
1min read El Salvador's President Nayib Bukele has sparked global interest with his ambitious plans for Bitcoin City, a modern-day El Dorado envisioned as a 21st-century utopia. Announced in 2021, the metropolis is slated to rise at the base of the Conchagua volcano, with renderings depicting a circular shape reminiscent of the Bitcoin logo and a golden structure.
In late January, a journalist visited El Salvador to explore the region and search for signs of Bitcoin City's construction. The journey took them from San Salvador to Conchagua, a small village nestled at the foot of the Conchagua volcano. Despite the village's charm and the beauty of the surrounding landscape, there were no visible signs of Bitcoin City's development.
The mayor's office in Conchagua confirmed that no construction had begun, and no government officials had been seen in the area. The mayor's assistant, Margarito García, dismissed the plans as mere words, stating that there had been no signs of activity. However, he acknowledged that the attention brought to the region could have a positive impact on the local economy.
One notable development in the area is the Pacific Airport, a project approved by the Legislative Assembly in 2022. The airport is expected to cost $328 million and initially service between 300,000 and 500,000 passengers per year. Construction is slated to begin in 2025. Some speculate that the Pacific Airport could be a first step towards building Bitcoin City, as the project includes plans for an airport, port, rail services, commercial and residential zones, restaurants, and entertainment venues.
President Bukele has envisioned Bitcoin City as a self-sustaining ecosystem with mining, agriculture, culture, and sports. The city would have no income tax, profit tax, property tax, hiring tax, or municipal taxes, with only VAT being collected to fund public infrastructure and city maintenance. The Conchagua volcano's geothermal energy was planned as the primary power source for the city.
The construction of Bitcoin City was initially planned to be funded via a $1 billion bitcoin-backed tokenized bond, called the Volcano Bond. The bond received regulatory approval in December 2023 and was expected to launch in the first quarter of 2024. However, the Salvadoran government has remained silent on the matter since 
