Nayib Bukele, the President of El Salvador, announced his decision to build a new city in November 2021. The plan is to base the payment system of ‘Bitcoin City’ around cryptocurrency and power the city with geothermal energy. Bitcoin City is expected to be built near a volcano.
What draws the suspicion towards its feasibility is the opinion expressed by Ricardo Navarro, a prominent environmentalist.
Ricardo Navarro highlighted that the location was irrelevant as geothermal energy could be generated with groundwater and steam. He added that Nayib Bukele must work on establishing a dependable source of electricity and water for the country instead of building a Bitcoin City near a volcano.
It will take time to build the city if priorities are reset, but the 6 million population of the country would at least have basic necessities available for them.
He said, “It is like thinking that you are rich because you live next to a bank.”
Another concern expressed against the building of Bitcoin city is related to the time in which it can be built.
Marit Brommer has expressed the doubt by warning that it would take two to three years to generate electricity from geothermal sources. This indicates that even if the city is built in the next 1 year, the power would only be available after approximately 1-2 years, leaving the city without any power for a long time.
Asset Managers further add to the list of doubting the feasibility of building Bitcoin City by Nayib Bukele.
The International Monetary Fund did not support El Salvador’s move of legalizing Bitcoin along with the US Dollar.
The organization, responsible for fostering monetary cooperation globally, is assumed by Asset Managers to offer no financial support to the country in the future if it goes ahead with building an entire city based on Cryptocurrency.
Bitcoin City will be funded by bitcoin bonds worth $1 billion, out of which 50% of the portion will be allocated to buy more cryptocurrency.