El Salvador’s president, Neb Bukele, said officials will be able to harness the geothermal energy of one of the country’s inactive volcanoes to power the Bitcoin City project.
In a statement on Sunday, Bukele said there is a 90% chance that the Konchagua volcano will be used to generate 42 megawatts — “enough to power the entire city of Bitcoin,” according to the president. The Salvadoran leader said state electric company LaGeo continues to ramp up geothermal production from various volcanoes in the country, with one site believed to be capable of producing 95 megawatts.
Conchagua, located near the eastern border of El Salvador and overlooking the Gulf of Fonseca, has not experienced confirmed historical volcanic eruptions. According to Bukele, if the energy consumption in the planned Bitcoin city for the country exceeds the power of the volcano, it can be obtained from other websites. He said any excess energy will also be used for Bitcoin (BTC) mining to replenish El Salvador’s coffers. Bukele previously announced several cryptocurrencies totaling 1,391 BTC – over $57.7 million at press time after briefly dropping below $40,000.
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Bukele first proposed to LaGeo to offer some of its facilities to BTC miners in June, shortly after he announced his intention to legal tender for cryptocurrency. In November, the president of El Salvador announced that the country plans to launch $1 billion in BTC bonds funded by Bitcoin. Cryptocurrency exchange Bitfinex and Blockstream both said they plan to support this initiative.
The president’s goal is for Bitcoin City to become an integrated city with jobs in tourism, construction, commerce and engineering. It is said that residents do not pay any tax on capital gains, income, property or wages.