The government of El Salvador caused a stir in the financial world in 2021, when it adopted Bitcoin as a legal currency. Yet, their plans to build Bitcoin City next to a volcano received less attention than it deserves. How are these plans developing and what could it mean for the future of the token?
The Move to BTC
El Salvador’s president, Nayib Bukele, is a crypto enthusiast who led the initiative to adopt BTC as a legal currency, alongside the existing US dollar. Before this, the Bitcoin Beach project was set up, with the aim of creating a sustainable cryptocurrency economy that helps locals and attracts tourists.
The country’s move to Bitcoin didn’t please everyone, as there were protests by locals who didn’t want this digital money to become legal currency. However, the move went through and Bitcoin almost immediately lost value, causing even more controversy, as El Salvador had bought $200 million of BTC, but the price plunged right after this. They’re currently about 50% down on what they’ve spent on the tokens to date.
What Is Bitcoin City?
Part of the plans includes creating Bitcoin City, which is to be some sort of futuristic hub where residents can use Bitcoin for everything and not pay any taxes. They plan to mine BTC coins there using geothermal energy from a neighboring volcano, and government-backed bonds will be issued to pay for it.
While things had gone quiet on the plans for Bitcoin City, and the bonds have been delayed several times, the country’s finance minister recently said that they’re still working on creating this crypto city fueled by volcano power. The government says that the price drop in the cryptocurrency market has caused them to delay their Bitcoin bonds, which they hope will raise $1 billion.
How Else is Bitcoin Spreading Across the Planet?
El Salvador isn’t the only country to make Bitcoin legal tender, as the Central African Republic followed in their footsteps and made it legal despite warnings that it goes against the Central African Monetary Union rules. It isn’t clear whether any other countries are planning to make BTC legal tender too.
We can also see the number of ways of using the token increase. It’s now easier to spend Bitcoin online or to find crypto ATMs to withdraw cash. This has helped to fuel more widespread adoption and remove some of the barriers that stopped people from using it in the past.
Another example comes in the way you can play Bitcoin casino and win money. In fact, the Bodog site confirms that other cryptos like Bitcoin Cash, Litecoin, and Ether can all be used to play their slots and table games too. A simple process for depositing or withdrawing funds means that even newcomers to digital money can safely and securely move their money in this way.
There are still some doubts over whether El Salvador’s Bitcoin City ever becomes reality. However, the fact that more and more people all over the world are using cryptocurrencies suggests that we’ll see other ambitious projects like this pop up in different places.