CoinMarketCap sat down with Samson Mow, CEO of Pixelmatic and JAN3, to talk Bitcoin.
CoinMarketCap sat down during the Bitcoin 2023 Miami conference with Samson Mow, the veteran Bitcoin bull, builder and thought leader, for an exclusive interview to get his take on the future of Bitcoin adoption, the challenges it faces in different regions, and its continuing value proposition.
Mow has been involved in numerous initiatives over the years to accelerate Bitcoin adoption globally. JAN3, his latest endeavor (named after Bitcoin’s genesis block date) which raised over $20 million in startup funding, focuses on nation-state adoption in the quest for hyperbitcoinization, the inflection point where Bitcoin becomes the world’s de facto currency.
Mow has been deeply involved in El Salvador’s Bitcoin adoption and policies since 2022, and his firm is now also making further inroads into specifically Latin America. He shared his thoughts on the need for infrastructure development, the role of stablecoins, and the geopolitical hotspots for Bitcoin's growth.
CoinMarketCap: How does your work with JAN3 tie in with Bitcoin adoption?
Samson Mow: At JAN3, we focus on engaging communities and governments for nation-state adoption, supporting grassroots initiatives to bridge the gap between different sides and increase Bitcoin adoption through tools such as Bitcoin laws, bonds, and Treasury strategies.
Our thesis states that hyperbitcoinization is inevitable, leading us to a future where Bitcoin is the sole currency, replacing fiat. This means we must transition smoothly to a Bitcoin-only system, currently encouraging adoption with parallel systems of dollars, yen, Korean won, and pesos in Bitcoin.
Understanding how to use Bitcoin doesn't come naturally to people. Historically, demonetization events have caused chaos, as was seen in India in 2016 when the withdrawal of only 2 bills led to tragic consequences where people died unnecessarily. Medical procedures couldn't be paid for, and hospitals refused the outdated currency.
Recognizing this unavoidable shift, we need to establish infrastructure now to bring countries into the Bitcoin standard. The transition won't be gradual but rather sudden, impacting all 8 billion people at once.
CoinMarketCap: How do you foresee the transition to Bitcoin-only economies, and what challenges do you anticipate?
Samson Mow: While Balaji's prediction of $1 million per Bitcoin in three months may not be accurate, there will eventually be a rapid surge, leading to the collapse of fiat currencies. Game theory suggests that countries with their own currency will resort to printing it to acquire Bitcoin when it becomes a national strategic issue.
The shift to Bitcoin-only economies will not happen overnight; it will occur gradually and then suddenly. We expect a domino effect, with countries eventually realizing the strategic importance of Bitcoin and printing their own currency to acquire it.
The moment this shift occurs, it will happen swiftly. The current US regulations aimed at protecting the dollar are frustrating. In the short term, we hope to see improvements in both US regulation and the regulatory environment.
Governments and presidents can change, and we anticipate the emergence of better candidates with improved policies. Last year, we already saw politicians coming, and this year we saw them returning, like Cynthia Lummis.
However, now we're also seeing presidential candidates here like Robert F, Kennedy Jr. and Vivek Ramaswamy, which shows that Bitcoin is becoming more and more important at the nation-state level. This gives us hope.
CoinMarketCap: Can US over-regulation ever mean the end of Bitcoin?
Samson Mow: Things will change but right now, it’s not very great. It’s important to make the distinction that while it’s not necessarily bad for Bitcoin, it’s bad for Americans. Just like when China cracked down on exchanges and later on mining, who is harmed at the end of the day?
It's people trying to do something like run a business and a company, So US regulation won’t be the end of the world for Bitcoin, and while it won’t be great if they do crack down in America, Bitcoin will simply continue on, because you can't really stop Bitcoin.
For example, 20% of the hash rate is still in China and people still trade peer-to-peer there, it just changes form. Ultimately, Bitcoin is simply information, and you can’t really stop that.
And I think this is why the work we're doing at JAN3 is critical because someone has to engage at that level and share information and make connections.
A lobby group like CoinCenter is great, but they're focused on only one place. Our goal is that we can work with countries around the world and bring more Bitcoin knowledge to those politicians and potentially bring change.
Countries that adopt Bitcoin will become more prosperous, they'll be more aligned with the ethos of Bitcoin which is protecting property rights, protecting their sovereignty, and freedoms. But how does it fix the world? It fixes the people by changing their psychology and their thinking and imbuing them with the qualities of Bitcoin.
CoinMarketCap: Which world regions are you focusing on to supercharge Bitcoin adoption?
Samson Mow: While Bitcoin adoption is gaining traction globally, our primary focus is on Latin America, which we see as the most likely geopolitical hotbed for Bitcoin adoption. The region shows great potential due to El Salvador's Bitcoin Law, which anchors Bitcoin as a foreign currency and enables a lot of new use cases.
Take a look at other nearby countries for example: In Guatemala, they have a law called the Divisas Currency Law, which recognizes any foreign currency to be used as money in Guatemala. This means it doesn't require Bitcoin legal tender. The next president or regulator could simply say, Bitcoin is a foreign currency. So it's a very simple thing to do. The same goes for Panama. They were founded on the premise that you can use whatever money you want.
Find a new president that says: We are a Bitcoin country, and you're done.
So those to me are the lowest hanging fruits but you also see a massive need for Bitcoin adoption throughout Latin America in countries with double-digit inflation like Argentina, and Venezuela, where so many simply need Bitcoin.
So that's where our efforts are. We want to engage at the government level and grow the grassroots and we're also building a new Bitcoin wallet that supports Bitcoin and stablecoins natively, so we can give them free access to these two things.
CoinMarketCap: What role do stablecoins play in Bitcoin adoption, particularly in Latin America?
Samson Mow: Stablecoins serve as a beachhead for Bitcoin adoption, as people are already seeking dollar-denominated value and gravitating to that, and there are a lot of use cases in LatAm for stablecoins. Unfortunately, those current stablecoins are predominantly built on other sh*tcoin chains like Ethereum and Tron.
Our focus is on building our own Tether version on Liquid, a Bitcoin sidechain, which we hope will bring governments in through their need for dollars and hook them on Tether, a juggernaut that provides financial freedom and access around the world. By fulfilling this demand through stablecoins and Bitcoin, we want to involve them in a financial system.
CoinMarketCap: How do other untapped markets like Africa fit into your plans for global Bitcoin adoption?
Samson Mow: While Africa is interesting, we need to focus and can’t be everywhere all at once just yet. That focus is almost exclusively on Latin America due to its relatively more developed political structures. Their communities are strong and have displayed a natural affinity for Bitcoin, by organizing themselves in a very coherent way with strong networks and initiatives.
Africa, on the other hand, is still largely in chaos. It faces big challenges such as infrastructure development and energy structures, like our delegation saw last year on a visit to the Central African Republic.
Overall, Latin America is just more developed, and political structures are more mature. However, as Bitcoin adoption grows globally, we feel Africa will become increasingly interested in harnessing its potential.
CoinMarketCap: What is your stance on the BRC20 and Ordinals debate?
Samson Mow: It’s all just a distraction.
CoinMarketCap: What does Bitcoin mean to you, and why should someone consider owning it?
Samson Mow: Bitcoin is hope. Hope that we can have a better future. Most of the problems we see in the world today come from a corrupted money supply, all the money is fiat that can be printed, inflated, debased, and manipulated in a variety of ways.
Having sound and hard money like Bitcoin that cannot be corrupted is key. If you take a step back, you’ll see that civilization is built on money. Money is the base layer because that’s how we trade and interact individually and between countries. If that system is broken, then everything else is broken.
Ultimately the solution is simple: Fix the money, fix the world.
This interview has been edited for length and clarity.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
