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It looks like Bitcoin City – a project set to come to fruition in El Salvador – is encountering a few problems. While it’s unclear if plans for the city are on hold, many officials believe that President Nayib Bukele will not be able to fulfill his promises.
Bitcoin City Is Garnering Mixed Reactions
Bitcoin City was announced some time ago as part of the country’s ongoing bitcoin initiative, which ultimately began in September of 2021. Thus, it can be said that bitcoin has been a staple currency in the nation of El Salvador for approximately six months. The region was slated to attract tons of tourism with its real estate, hotels, restaurants, and other areas that could all be paid for with bitcoin.
In addition, many believed the city would attract foreign investments in that those who paid using crypto within its limits would not be subjected to tax laws.
Several retailers and business owners in the area are excited about the prospects of a bitcoin city, believing it will eventually build up the economy behind El Salvador. Amilcar Alvarado – a manager at the La Union outlet of Tienda Par2, a major shoe store – is confident in the country’s plans and thinks the city will do great things for El Salvador. He said:
Here, in La Unión, there is little commerce. La Unión needs more places like Bitcoin City to help the economy grow and La Unión to change, as we see in San Salvador. There should be many places to visit. In La Unión, we only have the bay and certain shops.
Anxel Miguel Flores Lainez – an agent in La Union that helps people understand the Chivo wallet, the official bitcoin wallet of El Salvador – is confident that the move is going to bring foreign investors to the table. He mentioned:
We’ve been sidetracked for a long, long time. This has been a joy for the people of La Union. The port here is unused. There are things that have not yet been activated, and many think La Unión will be able to grow.
Some Think the Planning was Weak
But not everyone is waiting with bated breath for the city to arrive. In fact, several analysts and national officials are confident the region will never come about given that the city was planned very quickly. Michael Peterson, for example, is the founder of Bitcoin Beach in El Salvador. He believes that the plans for the city came about too hastily and thinks it will be much harder to put the project together than city officials claim. He says:
Bitcoin City was something that came together at the last minute. I think there’s a good chance the government saw just how much interest there was in El Salvador and all these different businesses that were here looking to invest.