The small Portuguese archipelago of Madeira has “welcomed” Bitcoin (BTC), but what does that mean? Ad, made during the Bitcoin 2022 conference in Miami, has generated confusion and misinformation.
Miguel Albuquerque, the President of the Regional Government of Madeira, took to the stage in April to announce: “I believe in the future and I believe in Bitcoin.” He also said that he would work to “create a fantastic environment for Bitcoin in Madeira.” However, details remained unclear.
Cointelegraph spoke with André Loja, a Madeiran businessman who spearheaded the plan to bring BTC to the archipelago in the Atlantic Ocean, to find out how Bitcoin is shaping the islands’ development.
Madeira burst onto the Bitcoin world map on April 7 when JAN3 CEO Samson Mow proudly announced that he will “adopt Bitcoin.”
After the announcement, media around the world reported that Madeira had adopted Bitcoin as legal tender; However, it was not. Loja explained to Cointelegraph that before the announcement, he would have preferred to use the phrase “Madeira is embracing Bitcoin.”
“We embraced it, we supported it. We’re not ‘adopting’ Bitcoin because adopting it feels like we’re making it legal tender when it’s already de facto legal.”
In fact, in Madeira and all of Portugal—which is about 620 miles to the northeast—there is zero tax on Bitcoin capital gains. This means that every time one of the residents of Madeira disposes, spends or uses BTC, it is not necessary to declare it to the tax authorities.
Loja appealed to the president of Madeira a few weeks before the conference, sharing his vision of Bitcoin not only as a means of attracting foreign investment, but to, in his words, “protect my island from the fiat system.”
By chance, Albuquerque came to visit the Loja coworking space – one of the few places that accepts BTC in Madeira – and Loja took the opportunity to share his passion for Bitcoin. Madeira was hit hard by the COVID-19 pandemic and critical revenue from tourism plummeted. Therefore, Loja presented the president with a Bitcoin future as a means to diversify and restructure Madeira’s economy, among other advantages.
Apparently, Albuquerque was open to the idea, so it didn’t take long for Loja to seek the help of Bitcoiners from all over the world, such as Daniel Prince, a well-known Bitcoin podcaster; Jeff Booth, author of The Price of Tomorrow; and even Michael Saylor, CEO of MicroStrategy.
Within a few weeks, the all-star Bitcoiner team got in touch with the organizers of Bitcoin 2022 to arrange for the president to appear on stage. Ultimately, having the head of state of an autonomous region endorse Bitcoin was too big an opportunity to miss.
Upon landing in Miami, Loja and Albuquerque were invited to Saylor’s flashy Miami villa, “yachts and everything,” Loja joked. Although Loja had already put the orange pill on the president, the conversation with Saylor was on another level:
“Michael Saylor sat down with President Albuquerque, and well, […] he rather sat with his mind!”
Saylor told Albuquerque that “you have to focus on Bitcoin. Everything else is garbage.” A conversation the president likely won’t forget, as the seminar was enough preparation for him to take the stage before 25,000 Bitcoin enthusiasts.
Loja explained that the announcement that Madeira adopts Bitcoin would be the “starting shot” for Madeira to become an island where Bitcoin prospers alongside its inhabitants. For Loja, who has already translated popular books related to Bitcoin into Portuguese, “you start with education, the most important thing.”
In fact, Loja cut his teeth during the 2018 bear market. Passionate about education, Loja works closely with other industry educators, like Knut Svanholm, author of Bitcoin: Everything Divided by 21 Million, to teach the principles of sound money:
“I have many ideas, from kindergarten to schools and workshops for adults, and to bring people from outside the island. The association will have the best as advisers.”
To this end, Loja is founding the Sound Money Foundation, a Bitcoin education center in Madeira. The center is supported by Mow and Booth, among others, and aims to help locals better understand cryptocurrency from a young age.
Along with the educational push and focus on improving “financial literacy”, the hometown of Loja also attracts Bitcoin companies with attractive tax incentives. In the International Business Center, companies only pay 5% corporate tax, a very competitive rate. Portugal was already a budding hub for Bitcoin users, but now businesses can benefit from it.
Further down the road, Loja plans for the autonomous government of Madeira to mine Bitcoin with leftover renewable energy – since the island has abundant wind and sunlight – and even use “a multi-signature wallet for the government to work with Bitcoin financially.”
As a result, the government would take full custody of the Bitcoin it mined, taking control of the private keys. Loja noted that the power grid is an independent “public company,” so any Bitcoin mined by the grid would go to government multisig wallets.
In essence, Madeira’s approach to Bitcoin goes beyond the lauded status of legal tender. DFrom public sector BTC mining and education to state multisig wallets and having Saylor on speed dial, the island is slowly heading toward a Bitcoin future.
Not surprisingly, Loja’s holistic approach to the island “embracing” Bitcoin has a low time preference.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information set forth herein should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Keep reading:
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the full amount invested may be lost. The services or products offered are not aimed at or accessible to investors in Spain.