The year that is coming to a close has seen several cities and countries evolve their approach to Bitcoin, and now they are bidding to become full-fledged hubs in 2022.
Summary
El Salvador, the largest Bitcoin experiment
The most striking case is certainly that of El Salvador. In the Central American country since September 7, 2021, Bitcoin has been legal tender along with the US dollar. That means that Salvadorans can pay and be paid in Bitcoin (or dollars). This choice has inevitably made El Salvador one of the countries with the highest rate of Bitcoin adoption.
President Nayib Bukele has an ambitious project that also aims to produce BTC and use it for investment.
A solution to mine Bitcoin with the energy produced by volcanoes to feed a local mining farm is being studied. How much this mining farm is capable of producing remains to be seen.
El Salvador has also opened a fund powered by both dollars and Bitcoin. From time to time, when Bitcoin suffers price drops, President Bukele authorizes purchases of hundreds of BTC that go into the fund.
With Bitcoin’s earnings, the country is already building schools and hospitals.
The latest project is to build a “Bitcoin City.” To do so, a $1 billion bond will be issued.
All that remains is to wait for how all this will evolve and if other countries will follow the example of the small American state.
Brazil winks at Bitcoin
The next country that could adopt Bitcoin as legal tender is Brazil. If this happens, it would be truly revolutionary. Brazil is the largest South American country and has over 200 million inhabitants. Now that could lead to massive growth in Bitcoin adoption.
At the moment, however, this is only a bill put forward by Congressman Aureo Ribiero that has been approved by the relevant committee and will now have to go to a vote in Parliament.
Surely Brazil is fertile ground for Bitcoin. Suffice it to say that here are already on the market ETFs on Bitcoin spot that in the United States still need to be approved by the SEC.
Kazakhstan, the new land of mining
Moving to Asia, Kazakhstan deserves mention. That’s where Bitcoin mining has moved after the ban from China.
Kazakhstan can boast a very low energy cost, but it is energy from fossil fuels. In short, it’s not a “green” source.
The government is trying to make amends by curbing illegal mining. It will probably pass a law allowing miners to be taxed and committing them to use clean energy.
Crypto-friendly cities: the rivalry between Miami and New York
Among the crypto-friendly cities, Miami should definitely be mentioned. The Florida metropolis is getting noticed in the cryptocurrency scene also for the openings of its mayor, Francis Suarez, who is even willing to receive his salary in Bitcoin.
The city also has its own cryptocurrency, the Miami-Coin, and last June hosted the Bitcoin Conference, the most important Bitcoin event in the world.
Attempting to overshadow Miami is New York City. The Big Apple now boasts a pro-Bitcoin mayor, Eric Adams, who wants to make New York a crypto hub. He said to be ready to receive his salary in Bitcoin.
Dubai, the real crypto hub
One city is in pole position to be a true crypto hub: Dubai. Yes, because the capital of the United Arab Emirates has “free zones,” that is, particular places where opening a business is convenient (but not exempt from licenses and authorizations).
One of these free zones, the Dubai World Trade Centre Authority, has signed an agreement with the local Securities and Commodities Authority to host crypto activities. Among the first to take advantage of this agreement is Binance, which will work with the DWTCA to accelerate the emergence of this hub.
That would make Dubai one of the beating hearts of the industry.
