El Salvador’s Bitcoin City ropes in new startup to set up digital infrastructure

El Salvador’s Bitcoin City ropes in new startup to set up digital infrastructure
Representative imageBusiness Insider India

  • Bitcoin entrepreneur Samson Mow announced his new company, JAN3, at the Bitcoin 2022 Conference.
  • The startup has signed a memorandum of understanding with El Salvador to build the digital infrastructure for the country as well as for Bitcoin City.
  • According to him, two new jurisdictions are en-route to adopt Bitcoin as legal tender soon.
El Salvador’s plans to launch the world’s first Bitcoin City has another stakeholder now, Bitcoin entrepreneur Samson Mow and this newly incorporated startup JAN3.

The Central American nation and Mow’s new company have signed a memorandum of understanding to help develop digital infrastructure not just for Bitcoin City, but for all of El Salvador.

The initiative lines up with JAN3’s mission of accelerating Bitcoin adoption in the world. And, according to Mow, El Salvador is just the beginning. At the Bitcoin 2022 Conference, he disclosed two new jurisdictions are set to follow in El Salvador’s footsteps. The Caribbean island of Roatan and Portugal’s Madeira will also be adopting Bitcoin as legal tender soon.

Mow added that Mexico is also a potential candidate but the country is yet to finalise its stance.

Locals aren’t sold on Bitcoin City’s utopian proposition

Bitcoin City was proposed by Bukele as a utopian construct for Bitcoin believers. The city will be laid out in a circle. And, it’s citizens won’t have to pay income, property or capital gains taxes — just value added tax (VAT).

Bitcoin City isn’t just a special economic zone (SEZ). It will include residential and commercial areas. It will have restaurants, its own airport as well as a port and rail connectivity.

Despite all the hype, locals in the country aren’t holding their breath, according to CoinDesk. El Salvador’s roll out of its national crypto wallet, El Chivo, was buggy that led many to question the country’s technology prowess to handle the legalisation of Bitcoin.

Moreover, the multiple delays in issuing ‘Bitcoin Bonds’ to the development plans of Bitcoin City has led to more uncertainty. Analysts note that the geopolitical tensions between Ukraine and Russia are likely to add to the delay. Without the funds to start building, the development of Bitcoin City will get delayed further.

Who is Samson Mow?

Samson Mow is the former chief strategy officer (CSO) of Blockstream, one of the biggest providers of blockchain technology in the world. He has also worked with BTCC, one of the largest bitcoin exchanges and mining pools globally, as the chief operating officer (COO) and led Ubisoft’s expansion into Asian markets as the Director of Production and Executive Producer.

In addition to JAN3, he’s also the founder of Pixelmatic, a company that strives to create engaging games that are built to encourage social interactions.

JAN3 has reportedly raised $21 million in funding with a market valuation of $100 million. The company’s name is a nod to 3 January 2009, when the first block of Bitcoin was mined by Bitcoin’s mysterious founder, Satoshi Nakamoto.

According to Mow, JAN3 wants to drive crypto adoption by focusing on advancing Bitcoin and Layer-2 technologies like Liquid and Lightning networks.

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