El Salvador have continued to take the lead in cryptocurrency adoption, first the country announced bitcoin as a legal tender some months ago and the latest is the official opening of a bitcoin city which will serve as a free trade zone that will house top exchanges and bitcoin mining farms. The president announced this project which is backed with a 1 billion dollars worth of bitcoin as a bond.
https://cointelegraph.com/news/el-salvador-to-inaugurate-bitcoin-city-backed-by-1b-bitcoin-bondsI'm very cautious,when I see news about politicians announcing such projects.
What is the incentive for a "top cryptocurrency exchange platform" or a crypto mining farm to locate their business in this so called "Bitcoin city"?No taxes and liberal crypto regulations?That's good,but is there anything else?Good infrastructure?An abundance of blockchain developers and programmers?I don't think so.
This "Bitcoin city" is supposed to be a free trade zone.There's nothing wrong with that,but I don't think that there will multiple merchants willing to use that free trade zone,because El Salvador is a poor country and the market is very small.
Anyway,that's a good initiative,but I don't trust politicians.They are capable of ruining every good project.