El Salvador appears on such countries regarding hyperinflated countries with many developing aspects. This country doesn’t have its fiat currency and uses USD to run the monetary system. In short, USD is the national currency of El Salvador, but the country has been facing many challenges due to an extreme reliance on this currency for a very long time. The challenges faced by this country to due USD usage as a fiat currency somehow affected the economy rate as other aspects of the country.
The previous year, the country experimented with boosting the economy by assigning bitcoin as a legal tender. If you are interested in bitcoin trading, you need to know about Bitcoin price fluctuations and usage. As a result, many people think that only BTC is the national currency of this country now; however, the authorities have still retained USD as a national currency.
Undeniably heavy acceptance of digital currencies is impressive, but many people are not comfortable with cryptocurrency exchange; that is why El Salvador has USD as another monetary option. El Salvador has some insane plan regarding digital currencies, as the president has announced a new flanged BTC city. Let’s find out BTC adoption as a legal tender and BTC city.
Key Takeaways!
In the list of national currency in El Salvador, BTC is a new name.
The South American country El Salvador has initiated this bold move, and it has also influenced two other countries to do the same.
This country’s plans regarding digital coins, especially BTC, are insane as the president performs many practices to promote and facilitate cryptocurrency adoption and transactions.
El Salvador has acquired both praise and criticism after this move. However, the criticism acquired by this country conveys that bitcoin adoption will skyrocket the funding of illicit activities like money laundering.
Even some of the Salvadorans are not in favor of adopting BTC. But BTC sounds like an excellent option for people away from the conventional banking system.
Read Also: The significance of cryptocurrency price trackers!
What is BTC city?
El Salvador’s higher authorities have proposed the creation of a new bitcoin city. Undeniably, a bitcoin city is not different from a conventional city, but some dynamics and attributes make it memorable compared to other cities.
The backup of this entire city will not be in any conventional currency but in the form of bitcoin funds. The government has already started to collect this fund with the assistance of Salvadorans.
In return for collecting funds, the authorities have promised to give a definite return to investors. The budget of this fund seems to be magnificent as authorities have proposed a figure of $1 billion. However, as per reports, the authorities will not utilize total funding to form a bitcoin city as half will have been used to convert USD 500 million to BTC.
When will El Salvador execute their plans of making a BTC city?
As per reports, the higher authorities will construct this city in 2022. Bitcoin city seems to be revolutionizing living as this city will have no taxation scenario. On the other hand, international monetary funds have signaled a surge in corruption and money laundering after creating a bitcoin city.
Moreover, unlike conventional cities, BTC city will not use any nonrenewable energy source like electricity as it will use the cheapest and eco-friendly source of energy, geothermal energy. The country is looking to accomplish such goals with a Volcano present at the base. If El Salvador executes their plans of installing a geothermal energy plant in the country, the city will become pollution-free in no time.
Moreover, its use case in mining plants will skyrocket, and this will make foreign mining companies set up their plants in bitcoin city and boost the economy of El Salvador by a massive extent. In short, bitcoin city sounds like an initiative for the betterment of this country. Proper execution of this plan can make El Salvador one of the economic superpowers in no time.
After adopting BTC as a national currency is doing well and comprises some insane plans in the future regarding cryptocurrencies.
