Bitcoin cities and crypto countries: Will Bitcoin global adoption succeed?
The term "Bitcoin City" should not be a new phrase by this time since we are in a world that is being moved by the Blockchain. Several governments and Towns across the globe have proclaimed the bitcoin an official currency. Will the mass adoption of Cryptocurrencies over fiat currencies succeed?
For many years, several public and private efforts have attempted to encourage the adoption of Bitcoin on a local or regional level all across the globe. As a result, Bitcoin cities have emerged, particularly in the USA and the Netherlands. A few nations have also enacted cryptocurrency-friendly laws early on, leading to creating a slew of crypto-territories. For example, Malta was the first nation to accept Bitcoin after passing legislation in 2018.
The acceptance of Bitcoin at the national level by El Salvador, a Central American country with a population of 6.5 million people and the first government in the world to declare bitcoin an official currency, hastened things dramatically in September 2021. El Salvador's President, Nayib Bukele, is a fan of the world's first cryptocurrency and plans to make it a cornerstone of his economic and social policies.
El Salvador's decision has been widely discussed and criticized by several international institutions, including the International Monetary Fund, which sees it as a significant risk to financial stability, integrity, and consumer protection. However, the country's president continues to allow Bitcoin adoption.
The country already has plans to start implementing the creation of a national electronic wallet (Chivo), Bitcoin ATMs, and frequent bitcoin purchases for national reserves. There are also plans to build a valid "Bitcoin City" on the Honduran border.
The Central African Republic(CAR)
CAR, which has a population of 6 million people, will become the second nation to accept bitcoin as legal tender after the United States has done so since April 2022. Despite this, CAR remains one of the poorest countries in the world, with just 11 percent of the 4.8 million people having internet access. According to CAR President Faustin-Archange Touadera, the decision to embrace Bitcoin money over the country's fiat currency, the CFA franc, would enhance the lives of Central African inhabitants and identify CAR as one of the world's most daring and imaginative nations.
The Mayors' Era-Crypto
Aside from these national initiatives, there is significant interest in the world's first cryptocurrency, particularly among mayors of big cities. In the United States, the movement is especially prominent. Mayor Francis Suarez (R) of Miami wants to make Miami "the Bitcoin capital of the globe." While the city's official website has a copy of the "Bitcoin PDF," the cryptocurrency's foundation document, its mayor has been exceedingly zealous in supporting its acceptance. From the beginning of 2021, he said he intended to "examine the payment of municipal personnel in bitcoins and invest part of the city's money in Bitcoin" when speaking at international Bitcoin conferences.
Rio de Janeiro
Brazil's second-biggest city and the world's 19th most populated has been converting 1% of its cash reserves into cryptos since the beginning of 2022. "We know bitcoin is unpredictable, and some blame us for it," said Chico Bulhes, the city's economic development director at the time. "But this is the future, and Rio wants to be a reference for the world as a cryptocurrency-friendly city, like Miami in the United States or Zug in Switzerland." To him, making Rio a "crypto center" is reasonable, if not required, to combat inflation's impacts. And the strategy is paying off: the mayor of Rio de Janeiro stated in March 2022 that residents would be allowed to pay their real estate taxes in cryptocurrency as early as 2023, a first in the nation.
Borgo d'anaunia, a 2,500-person community in the Italian Alps, has become the first municipality in Italy to build a data center and mine bitcoins inside a hydroelectric power plant. The installation, according to the village mayor, eliminates the intermittencies inherent in renewable energy, making it more profitable: "When the winter is drier than usual, so the amount of water brought by the river is meager, this new technology allows us to maximize production and thus to value our installation more."