This is an editorial by Nazar Taras, Head of Content and Partnerships at PowerInside.
you want to pay taxes Bitcoin in Colorado? no problem.I want to buy a beach property in El Salvador in bitcoin? come. Want to send money abroad without paying high bank fees? There’s an app for that, and grandma puts money in her bitcoin wallet in no time.
At the Bitcoin Amsterdam conference this month, government representatives be the main character, We tell people to see for themselves how Bitcoin adoption is impacting their country.
Hector Enrique Selary Landaverde, Deputy Ambassador of El Salvador to the Kingdom of the Netherlands, believes Bitcoin has helped chart a new path for “peace, education and prosperity.” After Bitcoin becomes the country’s legal tender in September 2021, GDP grew at a record 10.3%, while tourism receipts surged 52%.. Never had a bank account before, 70% of the population are stepping into the digital age and making online financial transactions for the first time.
Steve Tangore, speaking on behalf of the Central African Republic, bets on Bitcoin adoption bring the country the infrastructure investment it needsAdditionally, Bitcoin can eliminate middlemen and eliminate the need to pay traditional transaction fees. bank of france.
Bitcoin Thinking on Citizenship
Katie Ananina of Plan B Passport noted on a separate panel that there is much higher demand for her services that allow people to obtain a second passport.she look Her clients are increasingly asking for “jurisdictional arbitrage”. In addition to Russian businessmen fleeing their homeland in search of safer shores, less wealthy people are also getting second passports.
Katie urged the audience to “bring the idea of Bitcoin money to civil rights.” This means hedging choice, defending freedom, and preserving sovereignty.
Competition to attract nomads
Consider this. A year ago, only 25 countries offered long-stay visa programs for remote workers. At the time of writing this 49 countries Fighting for the digital nomad dollar. Remote work has given us a quality of life only dreamed of by previous generations, and many options for possible housing.
An entire industry was born to serve this free generation — Borderless digital bankingTailored Nomads travel insurancecoworking and co-living community and even eco hotel For highly environmentally conscious people seeking work-life balance.
Jurisdictions that fail to attract freedom-loving global citizens will lose. So how can a small country or region compete in this environment? How can it stand out?
Estonia Digital Experiment
Consider the small Baltic country of Estonia in 2000. Estonia was also desperate to emerge from the post-Soviet economic stagnation. The vision was bold: To become the world’s most advanced digital nation. Transformation proceeded rapidly. You can now apply online to virtually any service and vote for your favorite politicians with services such as e-Health, e-Police, i-Voting, e-Residency and e-Tax. increase. Marriage or divorce is the only decision in life, face-to-face mediation required (Perhaps so that the ritual is not overly trivialized).
now, model For many countries, Estonia has been successful because of the rise of a younger generation of leadership, taking risky and bold steps and acting quickly. Today, even the archipelago of El Salvador and Madeira can be looked to for the next generation of digital innovation.
Madeira Bitcoin Project
About 1,000 kilometers from Lisbon, Portugal, Madeira has become a digital nomad hotspot, thanks to the work of some entrepreneurs locals. In May 2022, its president, Miguel Albuquerque, announced himself to the Bitcoin community. serious About the development of the Bitcoin ecosystem on the island.
Entrepreneur Jeff Booth discussing the Madeira project at a conference pointed Exploding government sovereign debt and the potential for fiat defaults are good reasons to go for Bitcoin.
“As the system collapses, governments will be faced with a choice, to ride the fiat horse or the bitcoin horse, have to ride two horses for a while, then choose. You have to.” — Jeff Booth
Lessons learned from Bitcoin adoption
So what lessons can we draw from current Bitcoin initiatives? is shown.
- Governments must have a bold vision. El Salvador, for example, plans to launch a $1 billion Bitcoin bond project. that is, bitcoin city — No income tax, no property tax, no payroll tax. bitcoin mining infrastructure.
- Technical cliches are common, especially during initial rollouts, as the El Salvador example shows. they will be fixed.
- Patiently carry out education across a broad spectrum of the public. For example, arm vulnerable people with knowledge of malicious phishing attacks.
- In a country where cash has always been king, Bitcoin usage won’t be adopted overnight. It’s a long road.
- encourage, encourageEl Salvador is a famous talent Bitcoin worth $30 — 3 days minimum wage — for all new wallets.
- Be honest about risks such as Bitcoin volatility versus fiat currency.
- Discover the magic recipe that unites Bitcoin’s decentralized philosophy with the need for a strong push for centralized government to push for the necessary legislative and structural changes.
- make some preparations strong opposition From the IMF and the World Bank and others. They get less excited when governments diversify away from fiat currencies.
- Clarify the tangible benefits of adopting Bitcoin and sing its praises to the world.
- Business Case 1: Avoid bank charges for remittances.Each year, El Salvador receives foreign bank wire transfers totaling $6 billion. The annual remittance amount is $51.6 billionBy switching to Bitcoin and sending it over the Lightning Network, the country could keep around $2 billion instead of giving away to Wall Street. Save on remittance fees for both senders and recipients in any country.
- Business Case 2: Hedging Against Inflation.with an inflation rate of 81.22% In 2022, Turkey is an ideal case for diversification to Bitcoin.And Turks know it — a country rank 5th in the world for cryptocurrency ownership.
Bitcoin is still the world’s most popular cryptocurrency. No government will miss the benefits of Bitcoin adoption.
Sometimes historical movements start small. el salvador beach or on initiatives like bitcoin beach brazil When Bitcoin Jungle Costa RicaThey mean things to come. Would you like to ride this merry orange wave too?
Asked what it would take for other governments to implement technological and economic transformation on the scale of El Salvador, Ambassador Landaverde said without hesitation and with some humility, “Once you dream, you will. there is,” he said.
This is a guest post by Nazar Taras. Opinions expressed are entirely his own and do not necessarily reflect those of his BTC Inc or Bitcoin Magazine.