El Salvador's Bitcoin City: The Long Journey from Vision to Reality

In the world of cryptocurrency, El Salvador has become a country of great attention. In 2021, amid a turbulent global economic environment, this small Central American nation boldly declared Bitcoin as legal tender, becoming the first country in the world to grant legal status to a cryptocurrency. The then-president also announced a grand plan to build a "Bitcoin City," sparking global discussions.

However, this decision has encountered many challenges during its implementation. The high volatility of cryptocurrencies, the inadequacy of infrastructure, and the public's discomfort with new technologies have all cast a shadow over this plan. The originally ambitious "Volcano Bond" plan has also been postponed repeatedly and has not yet been realized.

Nevertheless, with the rebound in Bitcoin prices and a shift in global attitudes, El Salvador's decisions seem to be showing some positive effects. It has been reported that the country has accumulated nearly 6,000 Bitcoins, with a market value of over $570 million. Meanwhile, the government is also actively promoting Bitcoin education and applications, including providing Bitcoin-related training for civil servants.

However, the public's acceptance of Bitcoin remains relatively low. The latest survey shows that only 7.5% of respondents indicated that they use cryptocurrency for transactions, while 92% admitted to never having used it. Cryptocurrency remittances are also showing a downward trend, reflecting the challenges Bitcoin faces in its application in daily life.

Nevertheless, the government of El Salvador is still adhering to its Bitcoin strategy. The country is planning to build a new capital market around Bitcoin and introduce more supportive policies. Recently, a trading platform conducted the first public offering of tokenized U.S. Treasury bonds under the legal framework of El Salvador, marking another breakthrough for the country in the field of digital assets.

Juan Carlos Reyes, the chairman of the National Digital Assets Commission of El Salvador, stated in an interview that the country is ahead of most nations in regulating cryptocurrencies. He emphasized that El Salvador has avoided granting cryptocurrency regulatory power to traditional financial regulatory bodies and instead created a dedicated digital assets commission to better adapt to the characteristics of new technologies.

Reyes pointed out that the committee's staff possesses deep technical knowledge of cryptocurrency, which enables them to better understand and regulate this emerging industry. He believes that El Salvador, as a small country, is more flexible in formulating cryptocurrency policies and can "start from scratch" to build an appropriate regulatory framework.

Despite facing numerous challenges, Reyes is optimistic about the future of cryptocurrency in El Salvador. He is particularly bullish on the tokenization of real-world assets (RWA), believing that this will bring more opportunities for ordinary investors. Reyes stated: "This is the first time that developing countries can lead the financial revolution, rather than being left behind. We are trying to encourage other countries to pay attention to El Salvador's model."

El Salvador's Bitcoin journey continues. Despite facing numerous challenges, the country's exploration and innovation in the cryptocurrency sector undoubtedly provide valuable experiences and insights for the world. As time goes on, whether the vision of this "Bitcoin City" will ultimately be realized remains to be seen.