This is an opinion editorial by Samson Mow, CEO of JAN3 and former CSO of Blockstream.
About a year ago, I had the opportunity to speak at Feel the Bit in El Salvador together with President Bukele. During the event, we announced the Bitcoin Volcano Bonds, while President Bukele made an important announcement of his own: the creation of Bitcoin City. By legally recognizing bitcoin as a tender and establishing Bitcoin City, President Bukele took a bold step toward nationwide adoption. This decision has helped speed up the timeline for bitcoin to become a nationally recognized currency.
Following the announcements, I received numerous requests from Bitcoiners around the world asking for my help in implementing Bitcoin projects in their local communities or with their governments. This interest came from both people actively involved in the Bitcoin community and investors. The enthusiasm was largely inspired by developments taking place in El Salvador and the impact they were having on the global Bitcoin landscape.
Driving Nation-State Adoption of Bitcoin
He had been toying with the idea of promoting the adoption of Bitcoin by nation states for some time. After careful thought, I decided to leave Blockstream in 2022, start my own company called JAN3, and dedicate myself to promoting the adoption of Bitcoin as a global currency, known as hyperbitcoinization, and its adoption by states. Now, many might ask, why help nation states, why speed up hyperbitcoinization?
The traditional fiat currency system has greatly exacerbated the credit cycle, a wave pattern characterized by periods of boom and bust. Under a gold standard, credit is issued based on assets such as gold deposits or real estate. By contrast, under a fiat standard, credit is issued by governments and is backed by debt, such as government bonds. During times of economic expansion, more loans are issued and businesses grow. However, at any given time, there may be too much credit in circulation relative to the economy’s actual output or productivity, creating a mismatch between the financial and real economies and leading to market bubbles or corrections. . These events have been occurring more frequently and with more extreme ups and downs.
The mechanisms that central banks have traditionally used are becoming less effective, like a diabetic who needs more and more insulin. If this trend continues, we can expect a severe economic depression in the future. Without clear price discovery, a dynamic economy, and the technological and market forces to alleviate competitive pressure, nation states can escalate into conflict and war. When the cake does not expand, it is easier to take it from someone else.
Under a Bitcoin standard, nation states have more incentive to make better use of their resources, since there is a real cost. This encourages peaceful and diplomatic resolution as the default balance of game theory. Adopting a Bitcoin standard and accelerating hyperbitcoinization may be our best hope for preventing the collapse of civilization and ensuring a free and prosperous future for humanity. Simply put, it can help prevent conflicts and wars fueled by economic competition.
I announced the formation of JAN3 at Bitcoin 2022 in Miami. JAN3, of course, is named after January 3, 2009, which is the day Bitcoin came into existence, also known as Genesis Day.
As our COO, a former Royal Marine named Doogie, told me, establishing a presence in El Salvador was important in establishing Bitcoin and allowing it to put down roots. We made the decision to open an office there for this reason.
For the Bitcoin network to become more robust, it is essential that more countries adopt a Bitcoin standard. Although Bitcoin does not need anyone’s help, it can be accelerated and supported if more countries, territories and cities adopt it. For example, if a country is mining Bitcoin, they are not attacking the network. If a country has made Bitcoin legal tender, they are not likely to try to ban “non-hosted wallets”. In general, having more countries adopt a Bitcoin standard is positive for the network.
Hashing until 2022
2022 was an interesting year for many reasons.
Madeira, the President of Portugal, Miguel Albuquerque, announced the creation of FREE Wood, which gives Bitcoin a foothold in the European Union. The autonomous nature of the Madeira region gives it the ability to make bitcoin a de facto legal tender.
Thriving, Honduras has become one of the most active Bitcoin hubs in the world. President Joel Bombar announced that bitcoin is legal tender in Próspera during Bitcoin 2022. Recently, a Bitcoin space was inaugurated there and a legal framework was established to allow the issuance of Bitcoin bonds.
On April 27, the government of the Central African Republic announced that it would adopt bitcoin as legal tender. This news was welcomed by Bitcoin enthusiasts, but also by the government. announced a project called Sango, which is based on an alternative cryptocurrency. It is clear that Bitcoin adoption in the country has not progressed as fast as some had hoped, but we are hopeful that the Central African Republic will continue to embrace and support the use of Bitcoin.
The crypto market experienced a bear market due to a variety of factors, including the collapse of the FTX exchange, the collapse of Luna/Terra, and the collapse of companies such as Celsius and Three Arrows Capital.
At the Panama Blockchain Conference in July, Towerbank, a leading Panamanian bank, announced plans to offer crypto banking services throughout Latin America and beyond and requested our assistance in implementing the Liquid network. Liquid, a Bitcoin sidechain, allows for the expansion of Bitcoin’s capabilities through the use of smart contracts, without introducing a native token. This relationship with Towerbank is a promising development in the world of crypto banking and could help further establish Bitcoin as a powerful and versatile financial tool.
On October 28, at the Plan B Forum in Lugano, Senator Zury Ríos of Guatemala presented a video for the Bitcoin community in which she expressed her interest in potentially incorporating Bitcoin into her future political plans. She opened a dialogue with the community and invited them to share her thoughts and ideas on the subject. The Savior also announced was opening an office in Lugano, with the intention of exchanging knowledge and benefiting commercially. Through the incredible efforts of Bitfinex and Tether CTO Paolo Ardoino, Lugano is making great progress in onboarding merchants to Bitcoin. They have already made it get thousands of merchants to embrace cryptocurrency, and they continue to bring more.
At the Adopting Bitcoin conference in El Salvador in November, it became clear that the situation with gangs in El Salvador has improved a lot. Citizen security has increased significantly, with a notable decrease in homicides and other crimes. This improvement is a testament to the effective measures implemented to address the problem and bring peace and security to the people of El Salvador.
El Salvador’s economy minister announced a new digital securities bill, paving the way for the country to issue bitcoin-backed bonds. The legislation will establish the National Digital Assets Commission, which will be in charge of regulating issuers of digital assets, service providers and other participants involved in the process of public offering of digital securities.
There’s a lot more to go over, but unfortunately I can’t discuss it yet. Changes are coming and Bitcoin will be a big topic around the world.
Visions for 2023
2023 is shaping up to be a promising year for Bitcoin. In El Salvador, the digital securities laws that will form the basis of the Bitcoin Volcano Bonds have been sent to Congress for approval. These bonuses could be available on Bitfinex Securities very soon.
El Salvador’s star will truly continue to rise. El Salvador has already attracted a lot of interest for its Bitcoin adoption, and many other countries are closely watching how things progress there. As El Salvador continues to lead the way in Bitcoin adoption, we expect it to continue to rise in prominence.
We expect to see more Bitcoin adoption in the coming year as it continues to gain ground despite current lows. The world needs bitcoin, at any price. For those living in wealthy countries, Bitcoin is optional, but for people living in the global south, it’s a necessity. Take note, the gap between the “rich country” and the “global south” is closing fast.
At JAN3, we have received numerous requests from people in different countries for help with Bitcoin adoption. In addition to our work in El Salvador and the Madeira region, we are also focusing on countries like Costa Rica, Ecuador, and more. Last week, Sitiveni Rabuka, the Prime Minister of Fiji, stated that he was considering making Bitcoin legal tender.
Despite the current bear market, we believe there is no better time to build a solid foundation for the future of Bitcoin adoption. The work we do now will lay the foundation for a freer and more prosperous economic future through the acceleration of hyperbitcoinization and the adoption of the nation state.
This is a guest post by Samson Mow. Opinions expressed are entirely their own and do not necessarily reflect those of BTC Inc or Bitcoin Magazine.
