El Salvador, a nation known for its Bitcoin-friendly stance, is currently in the process of developing a regulatory framework for cryptocurrencies with the assistance of a major player in the digital asset world associated with the largest stablecoin.
The parent company of Bitfinex exchange and Tether (USDT), iFinex, has formed a partnership with El Salvador to support President Nayib Bukele’s vision of implementing comprehensive crypto legislation. In an announcement made on May 13, it was disclosed that iFinex will collaborate with Bukele’s government to establish a secure environment for the digital asset and securities market in Central America. Bitfinex and Tether CEO, Paolo Ardoino, mentioned that this partnership will create new opportunities for capital mobilization and the tokenization of real-world assets like equities.
Bitfinex and Tether, founded in 2012 and 2014 respectively, are among the oldest and largest entities in the cryptocurrency world. Tether, responsible for issuing USDT, the leading stablecoin in the crypto market with a market cap exceeding $110 billion as per CoinGecko.
President Bukele, echoing Ardoino’s sentiments, expressed confidence in the partnership’s potential outcomes. In addition to this collaboration, Bukele’s government has also emphasized transparency in its crypto dealings. El Salvador introduced a Bitcoin tracker to provide public visibility into its Bitcoin holdings, confirming that the country owns 5,748 BTC valued at over $360 million.
El Salvador made history in 2021 by adopting Bitcoin as legal tender and actively accumulating the cryptocurrency, making it the first nation to fully legalize digital currency. Despite facing criticism from international organizations like the IMF, Bukele’s administration has remained resolute in its pro-Bitcoin stance, even announcing plans to purchase one BTC per day.
Nevertheless, the journey has not been without challenges. There have been reports of issues with the state-controlled Bitcoin wallet Chivo, as well as two instances of data leaks by hackers. At the time of this report, El Salvador had not addressed these concerns, but the country continues to deepen its involvement in the emerging crypto industry.
For more information:
– Bitfinex introduces tokenized debt for El Salvador’s new Hilton hotel
– El Salvador’s Bitcoin tracker: A closer look
– El Salvador’s successful Bitcoin adoption shuts down critic Schiff