El Salvador To Open A Bitcoin Embassy In Texas

February 16, 2023 4:20 pm Comments

El Salvador is continuing to open up Bitcoin embassies all around the world after the country previously announced that it opened its first Bitcoin embassy in Lugano Switzerland.

As for the second one, the country announced that it has opened it in Texas which indicates that Texas may be one of the states that are quite supportive of the crypto industry.

El Salvador is in a unique position given that it is the first country in the world to make Bitcoin legal tender and it seems that the results of the experiment have been positive so far.

As for why the country chose Texas for its second embassy, it was noted that Texas and El Salvador have a commercial exchange that is about $1.2 billion.

Given that much of the Texas government is pro-Bitcoin, furthering this new partnership could help introduce digital assets as part of that commercial exchange and grow it over time.

BitcoinMagazine reports:

The Texas Bitcoin Foundation, a public charity dedicated to research and education about Bitcoin, coordinated the meeting between Salvadoran and Texas state officials and hosted the Salvadoran delegation in Austin.

Much of the Texas government has been publicly pro-Bitcoin as of late, and this is one step further in its involvement in the industry. El Salvador became the first sovereign country in the world to make bitcoin legal tender, making history while simultaneously challenging the fiat status quo.

Since then, the country has made moves to create the first bitcoin-backed sovereign debt bonds as well as hosting a successful conference, and is home to many projects entirely powered by Bitcoin.

Just as the establishment of its Switzerland embassy was a step forward for El Salvador, this meeting between the country’s Ambassador and representatives of the Government of Texas is another milestone in its adoption of Bitcoin.

Texas has not yet made any moves to try to make Bitcoin legal tender in the same way that El Salvador has.

So far, Arizona seems to be the state where that is most likely to happen as they have attempted to pass such a bill twice already.

Investors are expecting that these embassies by the country will raise more awareness about the positive benefits of making Bitcoin legal tender in other regions in the world.

Of course, the transition will likely not be smooth as there are many who are against the idea of using digital assets as legal tender.

After all, when El Salvador had first announced it, it received a lot of negative criticism from many governments and banks.

Still, it is clear that we may still be in the very beginning stages of a new era of digital assets and that things may just take some time to adopt.

CryptoPotato reports:

The second-largest US state has emerged as a blockchain hub due to the friendly regulations and the pro-crypto stance displayed by the domestic authorities. In addition, the relatively low price of electricity and the favorable climate conditions have attracted numerous bitcoin miners to settle there.

Ted Cruz – an American politician serving as the junior US senator for Texas – is an outspoken supporter of BTC. He has praised its decentralized nature as its main merit.

The Republican is also a critic of the possible creation of a digital dollar. He introduced a bill last year that could forbid the Federal Reserve from launching such a monetary product.

“This bill goes a long way in making sure big government doesn’t attempt to centralize and control cryptocurrency so that it can continue to thrive and prosper in the United States. We should be empowering entrepreneurs, enabling innovation, and increasing individual freedom – not stifling it,” he said at the time.

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