Nayib Bukele, El Salvador’s President, has stated that officials will be able use geothermal energy from an inactive volcano to power the Bitcoin City project.
According to Bukele, there was a 90% chance that Conchagua volcano would be used to produce 42 megawatts. This is enough to power the entire Bitcoin City. According to the Salvadoran leader, LaGeo, the state-owned electric company LaGeo, was increasing its production of geothermal energy from various volcanoes throughout the country. One of these sites is believed to be capable of producing 95MW.
Conchagua is located close to El Salvador’s eastern border, overlooking the Gulf of Fonseca. It has not experienced any historical eruptions. Bukele said that if the country’s proposed Bitcoin City’s power consumption exceeds the volcano’s capabilities, it could be sourced from other locations. Bukele stated that any surplus energy would be used to mine Bitcoin (BTC), to increase El Salvador’s reserves. Bukele previously announced multiple crypto buys in excess of 1,391 BTC, more than $57.7million at the time this article was published following a brief price drop below $40,000.
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Bukele proposed that LaGeo make some its facilities available for BTC miners in June, shortly after he announced his intention to legalize the crypto asset. El Salvador’s president announced in November that the country would launch a Bitcoin City, which will be funded with $1 billion of BTC bonds. Both Blockstream and Bitfinex, a crypto exchange, have stated that they will support the initiative.
Bitcoin City will be a fully functioning city, with jobs in construction, tourism, commerce, and engineering. According to reports, residents will not have to pay any capital gains, income or payroll taxes.