I should disclose beforehand a personal bias; in fact I am a little lettuce[1] (the nickname that locals call to those born in the city of Lisbon). The goal of this article is indeed to present the current status quo of the situation of Web3 in the capital of Portugal. I took the month of April precisely to experience what this city has to offer in the Web3 scene in many of its facets. The reason being I work with a group specialized in blockchain on-line voting and am currently looking for a place to install ourselves and launch our product.
I am assuming the reader of this article is already familiar with most of the concepts surrounding Web3. From its decentralization to cryptocurrencies, DAOs to the token economy and what-not. And if not, please do get familiar[2],[3], for we might be talking about one of the most impactful technological changes since the appearance of the internet itself. So, lets get straight to the business: what is the current state of crypto in Portugal?[4]
Legislation
According to a binding pronunciation made by the Autoridade Tributária e Aduaneira[5] (public authority responsible for the administration of taxes and custom duties) cryptocurrencies although not officially recognized as a legal tender (institutionalized FIAT currencies) should be treated as such (could the pronunciation have been more ambiguous?). Consequentially, there is no taxation[6] over the possession or transfer of crypto assets, unless, there is an associated economical activity which is then subject to traditional labour market and monetary regulation. In other words, Portugal is a tax haven[7] when compared to other jurisdictions such as the USA, France or Spain where cryptocurrencies are considered not a currency per se but propriety and are thus subject to higher levels of taxation whenever there is a transfer regardless of its nature. All in all we can assert that there is a legal vaccumm when considering proper legislation which implies a certain level of uncertainty as forces to the left of the economy[8] relevant in the political context of the country insist in taxing cryptocurrency by whatever means. In any case, during the past year the first apartment was bought with profit generated from crypto.[9] For this, the crypto assets were exchanged for FIAT currency before concluding and officializing the transaction (Bitcoin to Euro). More recently though two luxury homes were sold and legally contractualized by exchanging cryptocurrency only[10] (ADA[11] in this case), raising the bar as to what is possible to do legally in the country.
Meanwhile, economists, investors, scholars and politicians are meeting at events such as the likes of The Future of Crypto Regulation in Portugal which took place recently in Universidade Nova de Lisboa to discuss the future regulation of the crypto market. The blockchain technology in itself is legal and welcomed unlike what we see in other parts of the world.[12]
Legislation aside, it should be fairly easy for you to exchange FIAT to crypto and vice-versa, specially if you own any of the smartcards mentioned in the following table as they can be used in any of the ATM machines which are available everywhere throughout the country.[13] Here, Portugal belongs to the EEA, European Economic Area:
Onboarding
Mediterranean climate, one of the safest countries to live[14], a relatively low cost of living[15] as well as being an entry point to the european markets, could Lisbon become the Sillicon Valley of Web3?
If you are interested in coming to Lisbon to work in Web3 maybe start by joinning LisbonDAO[16] where you will find a welcoming community which may help you get familiar with what is happening in the ecosystem. In case that you are merely a crypto enthusiast and not a software developer but would like to deepen your programming skills so that you can help create the so necessary new platforms, it maybe of interest for you to know that there is free education, independent of your age, level of education, country of origin, or anything else, in 42 Lisboa[17]. As for when the belly speaks, if you are trying to live of crypto only without exchanging it to FIAT, well then, a trip to Ajitama restaurant[18] allows you to pay your japanese meal with Bitcoin. Surely, other restaurants are soon to follow.
So, what else does Lisbon have to offer besides ATM machines where you can withdraw FIAT from a crypto wallet easily, a government unwilling to rule for or against crypto, restaurants where you pay entirely with Bitcoin, free education and overall welcoming weather and economical environment? Well, for starters, there are many, many, informal meetings around Web3. Such is the case of those meetups held weekly at Foxtrot[19] every thursday in the capital where these photos below were taken from:
In case you are looking more for an outdoor environment overlooking the city, then you should join the ranks at a more recent meetup group named Secret Garden Web3 Wednesday’s[20] (but don't share links about remote e-voting backed by blockchain on their Telegram, that will get you banned which happened to me recently):
What we just described here is a very positive cultural environment to discuss and exchange ideas about decentralization. It brings together enthusiasts, programmers, artists and everyone inbetween in beautiful places which coupled with the openess (or lack) of regulation around crypto makes Lisbon a very interesting place to be. Afterall, Web3 is expected to impact all sectors of society and is not circumscribed to the IT or financial sector only so it is good and important that these meetings are happening. On top of that, some of the most relevant IT conferences in the world also take place in the capital. Such is the case of the Web Summit.[22]
Looking for a cheap coworking space shared with other Web3 focused companies?
The Block[23] asking price starts at 300€ a month. It also hosts crypto meetups every friday.
If you are not looking to live outside of your own country however, but still would like to be part of Lisbon's flourishing Web3 scene then at least take note of LisCon[24], from 20th to 21st October and ETH Lisbon[25], which takes place during 9th to 11th September, both happening this year. It might be worth the trip as these are considered important conferences.
Sure Lisbon is obviously not the only place where important conferences and interesting meetups around Web3 are happening. Here[26] a very fine curated list of Web3 related events taking place this year made by the Crypto Nomads Club. I also strongly advise you to search on Eventbrite[27] and Meetup[28] to see what is happening in the areas around your location.
Continuing the journey
Lisbon does seem a little paradise for young digital nomads. But is everything so pinky? Arguably. Young entrepeneurs often seek financing for their projects. And for this they need to get in contact with venture capital or collaborate and work at IT startup hubs (also known as incubators or accelerators). Well these are rare in the country and often inactive or without enough capital to invest in new and high risk projects. Indico Capital[29], Draper Startup House[30] and Startup Lisboa[31] are some of the very rare exceptions. Other financial markets such as those of London, Barcelone, Paris or in Germany are much, much more interesting. A curated list[32] made by me brings this fact to light. So, for those looking for investors or big incubators or startup hubs, unfortunely, Lisbon might not be the right place for you. However if you are working remotely on a project that is already generating revenue, it might be.[33]
Lisbon hype?
Long story short; it does not make sense to talk about a central hub for the decentralized future, really. And what better words to describe what this is all about other than quoting the ending paragraphs of The Social Smart Contract written by the Democracy.Earth group:
"The status-quo will always speak from a skeptical position since halting progress can only come from a position of comfort. But just as the Internet didn't wait for the adaptation of age-old empires, blockchains won't care for political promises: a technologically advanced society can enter agreements of mutual cooperation without falling back to the means of coercion and violence.
Such is the remarkable consequence of disintermediation of trust without boundaries, a reality that won't emerge in a single isolated part of a country or region of the globe, but will be distributed across the entire planet. The next Silicon Valley is not in a far away land or on any land at all, but a new frontier of the internet itself rising as the one true open, free and sovereign network of peers."
So allow me to end this article by thanking all of you that I met during my incursion in Lisbon Web3, you are all wonderful people and true warriors fighting the right battle.
Do not give up.