Pontinha, a small micronation off the coast of Portugal, has just adopted Bitcoin as its national currency.
The self-proclaimed country, which is also in middle of naming itself Atlantis, will be the “first nation in the world” to officially adopt Bitcoin as its national currency, according to its prime minister, Joby Weeks.
While the island nation with four citizens isn’t exactly going to be recognised as a true international player by other nations, CryptoCoinNews has pointed out the huge impact of a bigger country adopting Bitcoin as its currency.
Pontinha is currently in the process of becoming a sovereign nation, and surprisingly, it’s actually looking like it will happen.
If that does happen and Bitcoin becomes the currency of a sovereign nation and not just some kind of dodgy digital money, it could show that widespread use and adoption is viable. A centralised Bitcoin bank could be established, and a working model for e-residency and Bitcoin businesses with legal protection could be a world-leader.
Prime Minister Weeks told Disruptek just this week that Pontinha is already looking to establish e-passports and e-residency to encourage such a thing.
The idea of having a small country with a Bitcoin economy is not a new idea. The Isle of Man, a self-governing nation of around 80,000 people, has been attempting to lure Bitcoin-based companies for the past 18 months.
Analysts believe around $US1 billion has been invested in Bitcoin start-ups so far, so if a small nation started their own Bitcoin economy, there could be big money to be made.