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The future was pitched as utopia: Adopting Bitcoin would catapult El Salvador into a techno-libertarian paradise, banking the unbanked, attracting global innovators and financing futuristic projects, from a popular digital wallet to smart cities and Volcano bonds.

Based on a projection that about half of eligible cannabis businesses would take part in the program, the city would collect about $30 million in back taxes while waiving about $25 million in penalties.