El Salvador’s Bitcoin strategy is expanding, with the government of the Central American nation partnering with the government of Texas to set up a Bitcoin Embassy in the United States. The intergovernmental collaboration aims to promote Bitcoin adoption and expand commercial and economic exchange projects. Milena Mayorga, the Salvadoran Ambassador to the United States, made the announcement on Twitter on February14.
El Salvador made headlines in 2021 when it became the first country to adopt Bitcoin as legal tender. The latest partnership with Texas follows the opening of the first Bitcoin Embassy in Switzerland’s southern city of Lugano in October 2022, where El Salvador and Switzerland are working on joint projects to promote cooperation in education and research institutions related to Bitcoin.
The opening of Bitcoin embassies is a significant step in the adoption of Bitcoin by nation-states and cities. According to former Blockstream chief strategy officer Samson Mow, Bitcoin embassies “imply cooperation between countries to develop new initiatives like establishing alliances between places that have adopted Bitcoin.” The partnership between El Salvador and Texas is a positive development for the expansion of Bitcoin as a currency, as it highlights the growing adoption of Bitcoin as legal tender and its use as a currency.
Texas has emerged as one of the most crypto-friendly US states, with some of the largest Bitcoin miners in North America operating in the state, including Riot Blockchain, Core Scientific, and Genesis Digital Assets. The state has passed crypto-friendly laws aimed at better adapting commercial laws to blockchain innovation and digital asset regulations, and lawmakers are considering a new bill to make Texas the crypto capital of the country.
The partnership between El Salvador and Texas could further boost the state’s position as a leader in the crypto industry. As the two governments work on joint projects to promote Bitcoin adoption and expand commercial and economic exchange projects, Texas may become the hub for Bitcoin-related activities in the United States.
Overall, it is a positive development in the growing adoption of Bitcoin as legal tender and the expansion of its use as a currency. As more countries and cities adopt Bitcoin, we can expect to see more Bitcoin embassies established around the world. Texas’s position as a crypto-friendly state and the partnership with El Salvador could further accelerate the growth of the cryptocurrency industry in the United States.