American Samoa remains largely invisible in the United States despite being a U.S. territory. The island joined the United States in the 1980s, long after most current Americans were born, and it has a population of roughly 50,000 people. With such a small demographic footprint, there are only a few tens of thousands of American Samoans living on the mainland, limiting its cultural presence. In contrast, territories like Puerto Rico and the Commonwealth of the Northern Mariana Islands have larger populations and more visible diaspora communities, which helps explain the disparity in public awareness.
Crypto experimentation in American Samoa
Because American Samoa is a U.S. territory with a degree of territorial autonomy, its tax and regulatory framework can be more flexible than that of the states. In 2020 a small group of crypto entrepreneurs—among them Vin Armani and Mark Edge—relocated to the island hoping to leverage this flexibility. Their goals included:
- Tax‑friendly treatment of capital gains – the possibility of amending local law to allow crypto spending without triggering a capital‑gains event.
- Development of on‑island crypto utilities – for example, a tool that let users pay electricity bills with cryptocurrency.
The COVID‑19 pandemic initially gave the community a window of relative isolation; American Samoa kept COVID‑19 out until October 2021, allowing residents to live normally while the rest of the world faced lockdowns. However, as the federal government increased scrutiny of crypto activities—citing cases such as the SEC’s action against the Libra project and the Ian Freeman money‑service‑business case—the community faced mounting compliance burdens. The effort required to stay within U.S. regulations ultimately led many of the early projects to be shelved, and the momentum for a larger crypto‑driven migration faded.
Honduras’ “ZET” model – private, autonomous zones
In 2013 Honduras amended its constitution to create Zones for Economic Development and Employment (ZETs). These zones function as a distinct political subdivision—somewhat akin to a municipality or province—but are granted a high degree of autonomy and can be owned by private individuals or entities. The legal framework allows for the establishment of private cities that operate under separate regulatory regimes.
Three ZETs currently exist:
| ZET | Primary focus | Notable characteristics |
|---|---|---|
| Prospera | Residential community | Most widely reported; attracts international attention. |
| Sedon | Residential community | Less publicized than Prospera. |
| Orcadia | Commercial farming | Supplies food to U.S. retailers such as Walmart; not residential. |
“Bootstrap City” (Cemorrison) – the most populated ZET
Cemorrison, rebranded by its developers as Bootstrap City, is the largest private city in Honduras and the most populated ZET worldwide. Key details include:
- Rent: $120 per month, targeting low‑income Hondurans earning roughly $500 per month.
- Location: Situated in the industrial heartland of Honduras, 40 minutes from the country’s largest airport and the deepest water port in Central America (Port Cortez). It is also 10 minutes from a rapidly growing city of several hundred thousand residents.
- Infrastructure focus: Designed as a low‑cost residential hub with basic amenities; the primary drawback is the lack of a beachfront.
Bootstrap City’s model aims to provide affordable housing while stimulating local employment through proximity to logistics hubs and industrial activity.
Practical considerations for prospective residents or investors
- Regulatory environment: Both American Samoa and Honduras’ ZETs operate under special legal regimes that differ from national law. Understanding the specific tax, labor, and compliance requirements is essential before relocating or investing.
- Economic viability: In Bootstrap City, rent is deliberately low to match local income levels, but residents should assess the availability of jobs, transportation, and services given the city’s industrial focus.
- Risk factors:
- In American Samoa, the uncertainty of future federal regulatory actions on crypto could affect any crypto‑related business.
- In Honduras, the private‑city model is still relatively new; changes in political leadership or constitutional interpretation could alter the autonomy granted to ZETs.
Overall, both regions illustrate how territorial autonomy can be leveraged to experiment with alternative economic models—whether through crypto‑friendly policies in a U.S. territory or through privately governed economic zones in Central America.
