Bitcoin Approaches $100,000, How is El Salvador's Bitcoin City Progressing?

In the field of cryptocurrency, El Salvador has become a noteworthy country. In 2021, against the backdrop of a turbulent global monetary environment and soaring Bitcoin prices, the country's president Nayib Bukele made a bold decision: to adopt Bitcoin as the nation's legal tender. This move caused a stir globally, with mixed reactions from various parties.

In the early stages, the influx of tourists brought new popularity to El Salvador. However, the volatility of cryptocurrency and technical issues in use quickly sparked public dissatisfaction. In November 2022, despite the severe blow to the crypto market, El Salvador remained committed to its Bitcoin plan and established a national Bitcoin office.

As the market warms up, the global attitude towards Bitcoin begins to shift. Several countries are showing interest in incorporating Bitcoin into their national reserves. El Salvador's decisions seem to have shifted from aggressive to forward-looking innovation. According to reports, El Salvador currently holds 5940.77 Bitcoins, worth nearly $580 million. The concept of Bitcoin City has also begun to attract investments, such as the large investment from a Turkish company in the port of El Salvador.

However, the public's attitude towards cryptocurrencies remains cautious. Surveys show that only 7.5% of respondents engage in cryptocurrency trading, while 92% admit they have never used it. From an economic perspective, El Salvador's Bitcoin vision still has a long way to go. Bitcoin accounts for only 1.5% of its GDP, and cryptocurrency remittances are also on the decline.

Nevertheless, El Salvador continues on its Bitcoin path. The country is planning to create a new capital market around Bitcoin and launch more supportive policies. Recently, under El Salvador's legal framework, tokenized U.S. Treasury bonds were issued for the first time.

The chairman of the National Digital Assets Commission of El Salvador, Juan Carlos Reyes, delved into the current status and future of digital assets in the country during an interview. He emphasized that El Salvador is ahead of most countries in regulating cryptocurrencies, adopting a technology-oriented regulatory approach.

Reyes stated that El Salvador avoids granting cryptocurrency regulatory power to traditional financial regulatory agencies and instead created a national digital assets committee (CNAD). This agency is composed of professionals proficient in cryptocurrency technology, capable of better understanding and regulating digital assets.

In the regulatory process, CNAD focuses on technical validation rather than solely relying on document review. Reyes believes that El Salvador, as a small country, actually has an advantage in establishing a regulatory framework for digital assets, as it can "design suitable rules from a blank slate."

The regulatory focus of CNAD includes consumer safety, financial security, and anti-money laundering. Reyes is particularly optimistic about the tokenization of real-world assets (RWA), believing that it will bring more opportunities for retail investors.

Reyes emphasized that El Salvador is leading a financial revolution, providing a reference model for developing countries. Despite facing challenges, El Salvador is still firmly advancing its Bitcoin strategy, hoping to occupy an important position in the global digital asset space.