It was presented as the project of a sustainable city, with low taxes and based on technology. However, behind the celebrations lie big questions. We invite you to know Bitcoin City, the riskiest bet, and to try to find out what is happening with the president of El Salvador. In the municipality of Conchagua, facing the Gulf of Fonseca, Bitcoin City is planned to be built. A sustainable city, with very low taxes, with clean energy and financed by cryptocurrencies. That was the plan that Nayib Bukele, president of El Salvador, presented in November 2021, during his presentation in English and from the city of Miami. Although there are no great details about the construction deadlines or exactly how it will be, it has some characteristics that distinguish it from the norm. To begin with, the mode of financing: bonds will be issued in the cryptocurrency market. It is estimated that more than $ 15 billion will be needed for the city's infrastructure. At the current exchange rate, around 300,000 bitcoins. At the urban level, it will have residential, commercial, service areas, entertainment venues, a port and an airport. The project would begin in 2022. Another novelty raised in Bitcoin City is the energy issue. The Conchagua volcano will be used to generate geothermal energy. It is a renewable and clean source, which is why the project was announced as sustainable and friendly to the environment. There is another issue that makes Bitcoin City different, taxation. You will only have one, the value added tax. On the contrary, there will be no taxes on income, profits, property, hiring or municipal fees. The announcement of Bitcoin City is undoubtedly a new for all these issues. However, it raised some questions for us. On September 7, 2021, El Salvador became the first country in the world to adopt bitcoin as legal tender. In this way, the cryptocurrency was added to the US dollar, the other currency used in the Central American country. The measure had been approved three months earlier by the Assembly, which attracted worldwide attention. From there, various organizations expressed their doubts about this measure. As this is a technical issue, we decided to consult with some economists. The bottom line was that we ended up with even more concerns. For example, volatility. The price of bitcoin is especially changeable, so it undermines the predictability that a national state needs. In October 2021 Bukele announced that a veterinary hospital would be built as the price of bitcoin rose, so there was a “surplus” of $ 4 million. But what happens to public accounts if the price of the cryptocurrency goes down, something that has happened several times? The second point is the energy issue. Every year, bitcoin production worldwide generates the same amount of carbon dioxide as entire countries like Chile or Belgium. In other words, it is a big problem for global warming. The project to use geothermal energy may be a solution, but at the moment it has not been carried out. In fact, El Salvador is a country with higher energy consumption than its ecological capacity. Finally, the tax issue is very striking. It was chosen that in Bitcoin City there is a single tax, VAT, and it is the most regressive of all. In other words, it affects those with the least resources the most. But in addition to the economic issue and cryptocurrencies, the announcement of Bitcoin City can help us to know a little more about Nayib Bukele. The president of El Salvador took office in 2019 at the age of 37. From there, he surprised the world with his relaxed style and his use of social networks. He gave directions to his ministers on Twitter, took selfies while giving the speech at the UN, wore his cap turned upside down and gave interviews to youtubers. Today we have, in En Cortinas, Nayib Bukele, president of El Salvador And the truth is that the public accompanied him. Opinion polls had approval ratings of more than 80%. Even in the midst of the pandemic, when many rulers saw their gauges fall, Bukele held fast. This was proven in the legislative elections of 2021, when it obtained strong support at the polls, allowing it to have a large majority in the Assembly. However, there are some elements that raised doubts due to the damage to the democratic system. This has been denounced by non-governmental organizations and journalists, both from El Salvador and abroad. One of the first calls for attention came in early 2020, when he stormed parliament with the support of military forces. At the time, he did not have a majority in the body and wanted to lobby for a law to be passed. Bukele entered the compound and literally took the place of the Speaker of the Assembly, which was a clear advance on another power of the state. Already in 2021, and with the legislative power in his favor, Bukele began an advance on justice. He promoted a law that retires judges older than 60 years or with 30 years of career. The opponents and the press maintain that it is a purge and that he wants to appoint like-minded magistrates. In fact, this is what happened in the Supreme Court: the Assembly allied to Bukele dismissed the judges that made it up. The impact of the measure was immediate. The new members enabled presidential re-election, which is expressly prohibited in the constitution of El Salvador. In this way, Bukele would be entitled to run for a new term in 2024, when the current one ends. These measures provoked the reaction of opponents and the press and even some street protests took place , despite the fact that Bukele continues to be highly popular. Faced with this situation, the president himself ironic on the subject and modified his Twitter biography to "Dictator of El Salvador", and then to "The coolest dictator in the world." In view of this scenario, we consulted Jesús Delgado Valery, from Transparency Electoral, about the president's ironies. “This is not laughable, it cannot be taken as a joke. They are real threats in a context of democratic setbacks throughout the region. It is worrying and not at all laughable. "Looking to the future, the analyst warns of the problems that may arise if he continues on the same path. " Nayib Bukele's speech has been attractive since it has capitalized on the discontent of the population. And In this context, a charismatic, disruptive leadership like Bukele's is attractive. However, it is nothing new. We have seen charismatic leaderships throughout the region, who come to end the status quo, propose a new narrative and end sadly in authoritarian experiences. ” Finally, we would like to know your opinion. Are you in favor of the measures taken by Bukele? Could it be a risk for the future of the country? Leave us your comment below. And if you got here, we invite you to that you are a member of Un Mundo Inmenso. With a monthly contribution you will help us to continue with the channel. You will also have access to exclusive materials.
