El Salvador, a Latin American country, is too close to the ideal of building Bitcoin City. It is reported that Bitfinex, the data encryption trading center, will sell the long-awaited "volcano" tokens in 2023.

Volcano Tokens are basically Bitcoin bonds publicly issued by blockchain applications, which will be traded on the Bitlinex Exchange. Paolo Ardoino, the technical director of Bitlinex, said that in his view, El Salvador needs more than US $1 billion Bitcoin bonds.

Last December, El Salvador passed the controversial Digital Assets Law. According to this law and regulation, the host country needs to establish a digital regulatory agency and prepare a prospectus for potential investors of US $1 billion bonds.

Ardoino indicated that Bitfinex would apply to the regulatory authority later to obtain the license of the trading center to buy and sell securities. Ardoino said, "We are on the right track to make things happen more timely.".

El Salvador Volcano Bond and Bitcoin City

Of the US $1 billion raised through the sale of volcanic tokens, El Salvador plans to spend half of that (US $500 million) to build a tax-free coastal town called Bitcoin City. Most of the city will use the unnecessary geothermal energy from the surrounding volcanic sites in the host country to extract Bitcoin.

According to the plan of President Naib Buclay, El Salvador will use another 500 million dollars to purchase Bitcoin as part of the national reserve. All future appreciation of digital net assets will also be shared with users.

Since Bitcoin became a currency in circulation, El Salvador has been facing great criticism in the past 1.5 years. With the host country exposed to volatile asset classes, people have formed doubts about the debt repayment level of the country. However, earlier this month, the host country paid US $800 million in bonds and the interest on the expired loans. Nayib Bukele, President of the United States, criticized these suspicious stories of El Salvador and wrote:

In the past year, almost every well-known international news organization said that“#BitcoinBlocking ". El Salvador will break the contract before January 2023 (as long as we have $800 million of bonds expiring today). Literally, there are hundreds of articles