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Citadel Market Report

El Salvador

Regulatory Environment: Bitcoin as Legal Tender since September 2021. Regulatory framework supports Bitcoin transactions, including the use of government-backed Bitcoin wallets like Chivo. No capital gains taxes on Bitcoin.

Adoption and Acceptance: High level of Bitcoin acceptance driven by government initiatives and widespread promotion.

Community and Infrastructure: Growing Bitcoin community with increasing infrastructure to support Bitcoin transactions.

Economic Stability: Developing economy with efforts to improve financial inclusion through Bitcoin.

Security and Privacy: Supportive regulatory framework ensures security and privacy for Bitcoin transactions.

GDP: $27.02 billion (2023 estimate).

Debt: High debt levels, with public debt around 89% of GDP (2023).

Energy Security: Limited but improving with investments in geothermal energy.

Inflation: Moderate inflation rate, around 4.5% (2023 estimate).

Government Risk: Moderate. While the government is currently supportive of Bitcoin, high national debt and potential political instability could pose risks.

Wyoming, USA

Regulatory Environment: Pro-Bitcoin legislation recognizing Bitcoin as property and providing a regulatory framework for crypto businesses. Established a blockchain task force and chartered special-purpose depository institutions (SPDIs) that can custody Bitcoin.

Adoption and Acceptance: High level of acceptance due to favorable regulations.

Community and Infrastructure: Strong Bitcoin community with robust infrastructure.

Economic Stability: Stable economy with diversified sectors.

Security and Privacy: High standards for security and privacy in financial transactions.

GDP: $42.1 billion (2023 estimate).

Debt: Relatively low state debt compared to national average.

Energy Security: Strong energy security with significant resources in fossil fuels and renewable energy.

Inflation: Low to moderate inflation, aligned with the national average.

Government Risk: Low. Stable political environment with strong support for Bitcoin at the state level, though federal regulatory changes could impact this.

Miami, Florida, USA

Regulatory Environment: Municipal support led by Mayor Francis Suarez. Launched MiamiCoin to support municipal projects. Operates under federal U.S. regulations, including AML and KYC requirements.

Adoption and Acceptance: High level of Bitcoin acceptance with numerous initiatives promoting its use.

Community and Infrastructure: Vibrant Bitcoin community and well-developed infrastructure.

Economic Stability: Strong and diversified economy.

Security and Privacy: High standards for security and privacy in financial transactions.

GDP: $400 billion (Miami metropolitan area, 2023 estimate).

Debt: Manageable debt levels, consistent with major U.S. cities.

Energy Security: Strong energy infrastructure, with ongoing investments in renewables.

Inflation: Moderate inflation, similar to national averages.

Government Risk: Low to Moderate. Strong local support but subject to federal regulations and policy changes that could affect cryptocurrency markets.

Malta

Regulatory Environment: Branded as 'Blockchain Island' with comprehensive regulatory frameworks. Overseen by Malta Digital Innovation Authority (MDIA) and regulated by the Virtual Financial Assets Act (VFA).

Adoption and Acceptance: High level of Bitcoin acceptance and regulatory support.

Community and Infrastructure: Strong Bitcoin community with developed infrastructure.

Economic Stability: Stable economy with significant focus on finance and technology.

Security and Privacy: Robust regulatory frameworks ensure high standards for security and privacy.

GDP: $17.7 billion (2023 estimate).

Debt: Moderate debt levels, around 54% of GDP (2023).

Energy Security: Dependence on imported energy but increasing investments in renewables.

Inflation: Low to moderate inflation, around 1.5% (2023 estimate).

Government Risk: Low. Strong and stable regulatory environment supportive of blockchain and cryptocurrency activities.

Madeira

Regulatory Environment: Benefits from Portugal’s favorable tax regime for cryptocurrencies with no capital gains taxes on Bitcoin. The government is exploring ways to attract Bitcoin investors and businesses.

Adoption and Acceptance: Growing acceptance due to favorable tax policies.

Community and Infrastructure: Emerging Bitcoin community with developing infrastructure.

Economic Stability: Part of the stable Portuguese economy.

Security and Privacy: High standards for security and privacy under EU regulations.

GDP: $4.8 billion (2023 estimate for Madeira).

Debt: Part of Portugal's national debt structure, moderate levels.

Energy Security: Reliant on mainland Portugal, with investments in renewable energy sources.

Inflation: Moderate inflation, around 1.3% (2023 estimate).

Government Risk: Low to Moderate. Favorable national policies for cryptocurrencies, though changes in EU regulations could impact local conditions.