Sarah Tran
Independent Analyst
- El Salvador’s president Nayib Bukele recently announced the country’s plan to launch Bitcoin City.
- The Central American country has inked a partnership with Blockstream and Bitfinex for the new initiative.
- The country is set to issue $1 billion Bitcoin bonds which are expected to accelerate the adoption of the leading cryptocurrency further.
El Salvador has taken another step forward with its cryptocurrency adoption as President Nayib Bukele announced the launch of Bitcoin City. The initiative was revealed by the country’s leader during the Bitcoin Week conference to celebrate the adoption of the leading digital asset in the country.
El Salvador advances efforts in Bitcoin adoption
Bitcoin City will be funded by $1 billion tokenized USD-denominated 10-year bonds and its development will involve prominent digital asset firms including Bitfinex and Blockstream. Bitfinex CTO Paolo Ardoino stated that the crypto exchange will launch a securities platform to hold the Bitcoin bonds for El Salvador’s initiative.
President Bukele added that Bitcoin City will become a fully functional city with shopping centers, residential areas, restaurants, an airport and a central plaza that would look like a BTC symbol from above.
Value-added tax (VAT) would also be collected in the city, as explained by Bukele, which is used to pay the municipality’s bonds and public infrastructure development and maintenance.
Samson Mow, the chief strategy officer at Blockstream stated that a portion of the invested capital will be taken out of the global circulation. $500 million worth of Bitcoin bonds will be subject to a five-year lock-up period.
El Salvador became the first country in the world to adopt Bitcoin as legal tender in September. However, citizens in the region have been skeptical about the reason behind the adoption of the bellwether cryptocurrency, fueling protests in the country.
Following the adoption of Bitcoin in the country, the government has been reinvesting unrealized gains into several infrastructure projects, including the construction of 20 new schools and a new veterinary hospital in the country’s capital.
Bitcoin price aims to reclaim $60,000
Bitcoin price continues to struggle as BTC is confronted with multiple stiff resistances. The first obstacle for Bitcoin price appears to be at the October 14 high at $58,519, then at the October 22 low at $59,595.
The leading cryptocurrency projected a rather bearish outlook when it broke below the parallel channel on November 18. Only a sustained slice above the lower boundary of the prevailing chart pattern could signal a recovery for Bitcoin price.
BTC/USDT 12-hour chart
Bitcoin price will discover additional resistance at the 100 twelve-hour Simple Moving Average (SMA) at $60,169. The $60,000 level continues to be a psychological resistance for BTC, and reclaiming this area could prevent the bellwether cryptocurrency from further losses.
Should the bulls weaken further, the first line of defense for Bitcoin price is at the October 28 low at $57,807, then at the November 19 low at $55,580.
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