El Salvador just launched a cryptocurrency city, and we bet there is a 500-carat gold statue in here somewhere

The war has just begun.

The innovative government of El Salvador is stepping into the virtual world with plans to launch its own “Bitcoin City,” according to a New York Times report that was published by El Faro on Thursday.

The Central American country is also going to sell its first bonds backed by bitcoin, according to the report. The so-called tokens are slated to raise more than $60 million, which will be used to finance social investments in education, healthcare and rural areas. (Like other crypto-currencies, bitcoin is not regulated, and it is not backed by the central bank in El Salvador).

El Salvador is just the latest government to push cryptocurrencies into the mainstream: Estonia had one up in 2014, and the state-owned Indian Railways announced in 2016 that it would be testing out its own cryptocurrency, m-Kash, in partnership with NEX, a London-based Bitcoin wallet service provider. So far, however, the rise of cryptocurrency in the countries it is increasingly accepted, such as India, seems to be correlated to that of global currencies falling in value. However, countries like El Salvador, which depend on foreign financial institutions for much of their transactions, don’t seem to care — so long as cryptocurrencies are used for “productive and peaceful purposes.”

Read the full story at The New York Times.


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