What does it signify that the tiny Portuguese archipelago of Madeira has “accepted” Bitcoin (BTC)? The announcement, delivered at the Bitcoin 2022 conference in Miami, has caused a lot of uncertainty and misunderstanding.

In April, Miguel Albuquerque, the president of Madeira’s Regional Government, took to the stage and declared, “I believe in the future, and I believe in Bitcoin.” He also stated that he will endeavor to “create a terrific atmosphere for Bitcoin in Madeira.” However, the specifics remained a mystery.

On April 7, JAN3 CEO Samson Mow joyfully stated that Madeira “would be adopting Bitcoin,” putting the island on the Bitcoin map.

News agencies all over the world stated that Madeira had adopted Bitcoin as legal cash after the announcement, although this was not the case. Prior to the announcement, Loja told Cointelegraph that he would have preferred to use the term “Madeira is adopting Bitcoin.”

“We support it and welcome it.” We’re not ‘adopting’ Bitcoin since doing so would imply that we’re making it legal tender when it already is.”

Indeed, Bitcoin capital gains are tax-free in Madeira and Portugal, which is about 620 kilometers to the northeast. That implies BTC does not need to be declared to tax authorities whenever one of Madeira’s residents disposes of, spends, or uses it.

Just weeks before the summit, Loja orange-pilled the president of Madeira, presenting his vision for Bitcoin as a way to not only attract international investment but also to “defend my island from the monetary system.”

Albuquerque happened to drop by Loja’s coworking space — one of the few places in Madeira that accepts Bitcoin — and Loja leaped at the chance to convey his enthusiasm for the cryptocurrency. The COVID-19 pandemic crippled Madeira, causing critical tourism earnings to plummet. As a result, Loja presented the president with a Bitcoin future as a way to diversify and restructure Madeira’s economy, among other benefits.

According to reports, Albuquerque was open to the idea, so Loja enlisted the support of Bitcoiners all around the world, including Daniel Prince, a well-known Bitcoin podcaster; Jeff Booth, author of The Price of Tomorrow; and even Michael Saylor, CEO of MicroStrategy.