El Salvador's Bitcoin City: The Game Between Vision and Reality

In the world of cryptocurrency, El Salvador has become a significant presence. In 2021, amid a turbulent global monetary environment, El Salvador's president Nayib Bukele made a bold decision: to adopt Bitcoin as the country's legal tender. This move made El Salvador the first country in the world to grant legal status to a cryptocurrency, drawing widespread attention from the international community.

The Bukele government not only incorporated Bitcoin into the legal currency system but also proposed a grand plan to build a "Bitcoin City." However, this decision faced numerous challenges during its implementation. Issues such as the high volatility of cryptocurrencies, security risks of electronic wallets, and slow transaction speeds led to a rapid decline in public acceptance of the new policy.

Nevertheless, with the global crypto market warming up, El Salvador's Bitcoin strategy seems to be gaining new life. It is reported that El Salvador currently holds about 5,940 Bitcoins, with a market value of nearly $580 million. In terms of urban development, a Turkish company plans to invest $1.62 billion in ports in El Salvador, one of which is located in the "Bitcoin City" area. Additionally, the government is actively promoting Bitcoin salary payments for public employees and related training certifications.

However, the public's acceptance of Bitcoin remains low. A recent survey shows that only 7.5% of respondents reported using cryptocurrency for transactions, while 92% admitted they had never used cryptocurrency. Only 1.3% believe that Bitcoin is the main direction for the country's future development.

From the economic data, El Salvador's Bitcoin vision still has a long way to go. Bitcoin holdings account for only 1.5% of GDP, and cryptocurrency remittances are also on a downward trend. Nevertheless, El Salvador continues on its Bitcoin path, planning to create new capital markets around Bitcoin and launch more supportive policies.

Juan Carlos Reyes, the chairman of the National Digital Assets Commission (CNAD) of El Salvador, stated in an interview that El Salvador is ahead of most countries in cryptocurrency regulation. CNAD adopts a technology-oriented regulatory approach, with its team having a deep understanding of the underlying technology of cryptocurrencies. This specialized regulatory approach has been recognized by cryptocurrency companies seeking to operate in El Salvador.

Reyes emphasized that El Salvador, as a small country, is more flexible in formulating a cryptocurrency regulatory framework. He stated that CNAD is committed to creating a secure and transparent crypto environment, while also focusing on the tokenization of real-world assets (RWA), hoping to provide more investment opportunities for the people of El Salvador.

Despite facing numerous challenges, El Salvador is still adhering to its Bitcoin development strategy. Reyes believes that this is the first opportunity for a developing country to lead a financial revolution rather than passively accept it. El Salvador's experience may provide a reference for other countries, demonstrating how to seize opportunities in the era of digital assets.