El Salvador’s Dreams for a Bitcoin City on Hold
El Salvador has always been a country with a lot of promise. But despite its natural wealth and resources, the nation has long been plagued by political instability and violence. Recently, there has been a renewed interest in this Central American country as a potential crypto paradise since the Bitcoin City was announced.
A modern paradise, where residents enjoy the absence of taxes and power is generated by a volcano. Funding is provided via bitcoin bonds. That was the idea for La Unión, a small city located in the eastern part of El Salvador. La Unión which is located in the department of Usulután. It’s expected to be a bitcoin-friendly utopia, with all government services available for purchase with bitcoin. This would include things like driver’s licenses, passports, and even taxes.
El Salvador is in dire need of an economic boost and bitcoin could be the answer. The country is one of the poorest in the Western Hemisphere. Nearly two-thirds of the population lives in poverty. Bukele, who took office in March 2019, made his proposal for La Unión on July 16th via Twitter. The plan by President Nayib Bukele is to make the bitcoin city the backbone of the nation’s economy.
The bitcoin City project in El Salvador is on hold for the time being. However, there is still potential for it to be implemented in the future. The government of El Salvador is still interested in using bitcoin as the backbone of its economy. There are still many bugs that need to be worked out with the bitcoin wallet. There is a high level of skepticism regarding the project.
Locals in the La Unión region have expressed a varying range of feelings about the proposals for the bitcoin city. On the one hand, they are concerned about whether President Bukele will keep his promises. On the other, they anticipate the bitcoin project will help boost the economy. The bitcoin city project is seen as a way to stimulate the economy and create jobs. La Unión would finally be considered an important city in El Salvador. The government is still committed to the project and is currently looking for a bitcoin wallet that can handle such a large transaction.
The bitcoin city project in El Salvador has been on hold for several months now. The main reason for this is the lack of a bitcoin wallet that can handle such a large transaction. The president of the country, Nayib Bukele, announced the project in November of last year. At that time, he pledged that the government would issue $1 billion in bitcoin-backed bonds. $500 million was stipulated to help construct the necessary infrastructure and the other part was reserved for purchasing additional bitcoins.
Bitcoin’s price volatility is a huge drawback for complete acceptance but still over half of the stores in La Unión already accept bitcoin.
Despite the El Salvadoran government continuing to push for the complete adoption of bitcoin and other crypto coins, a new survey by the Francisco Gavidia university has shown that over 91% of El Salvadoran residents still prefer using the dollar.
Stay tuned for more updates on this story!