What is the progress of the construction of El Salvador's Bitcoin City?

In the global cryptocurrency space, El Salvador has become a notable presence. In 2021, amid a turbulent global monetary environment, the country's president made a bold decision: to adopt Bitcoin as the national legal tender. This move has drawn widespread attention and discussion internationally, with various parties holding differing views on El Salvador's "Bitcoin City" plan.

In the early stages, the plan attracted a large number of tourists, bringing new economic vitality to El Salvador. However, the high volatility of cryptocurrency and technical issues during the usage process also sparked public dissatisfaction. By the end of 2022, the price of Bitcoin had plummeted, and El Salvador's Bitcoin plan seemed to be in trouble.

However, with the market warming up and a shift in global attitudes, El Salvador's decision is beginning to show foresight. Currently, several countries are considering incorporating Bitcoin into their national reserves. El Salvador is also steadily advancing its Bitcoin strategy, continuously increasing its Bitcoin reserves, and investing resources in public education and infrastructure development.

Nevertheless, data shows that El Salvador's Bitcoin vision still faces challenges. The public's usage rate of cryptocurrency remains low, and cryptocurrency remittances are also on the decline. The president has also acknowledged that the level of Bitcoin adoption has not met expectations.

But El Salvador has not given up on its Bitcoin journey. The country is planning to build a new capital market around Bitcoin and introduce more supportive policies. Recently, some financial innovation projects have been implemented in El Salvador, demonstrating the country's regulatory advantages in the digital asset space.

Juan Carlos Reyes, the chairman of the National Digital Asset Commission of El Salvador, emphasized in an interview that the country is at the forefront of cryptocurrency regulation compared to most countries. They have established a dedicated regulatory body and adopted a technology-driven approach to manage digital assets, a method that has been recognized by the industry.

Reyes stated that El Salvador's regulatory team has a high level of professionalism and technical background, enabling them to deeply understand blockchain technology. This allows them to evaluate and process applications from crypto businesses more quickly and accurately.

Unlike traditional financial regulation, El Salvador's approach is to build a regulatory framework suitable for digital assets from scratch. This method allows the country to respond more flexibly to the challenges brought by new technologies.

Although El Salvador is a relatively small economy, it is precisely this that allows it to adapt and embrace new technologies more quickly. Reyes believes that El Salvador has the opportunity to lead a financial revolution in the digital asset space, setting an example for other developing countries.

El Salvador's regulatory focus includes consumer protection, financial security, and anti-money laundering. They are particularly concerned with the tokenization of real-world assets, believing it will bring new opportunities for ordinary investors.

Although challenges still exist, El Salvador is striving to position itself at the forefront of global digital asset innovation. Over time, whether this small country's bold attempts can succeed will continue to attract global attention.