iFinex, the parent company of Tether, to offer support for El Salvador’s cryptocurrency regulations
El Salvador, a country known for its support of Bitcoin, is currently developing a regulatory framework for cryptocurrencies with the assistance of a prominent digital asset company affiliated with the largest stablecoin.
iFinex, the parent company of Bitfinex exchange and Tether (USDT), has entered into a partnership with El Salvador to help President Nayib Bukele achieve his vision of comprehensive crypto legislation. This collaboration aims to establish a strong foundation for the digital asset and securities market within the Central American jurisdiction. Paolo Ardoino, the CEO of Bitfinex and Tether, expressed that this partnership opens up new opportunities to raise capital and tokenize real-world assets such as equities.
Both Bitfinex and Tether are well-established entities in the crypto industry, with Bitfinex being launched in 2012 and Tether in 2014. They have been pioneers in peer-to-peer digital asset exchange and stablecoin operations. Tether, in particular, manages the issuance of USDT, the largest stablecoin in the crypto market, with a market capitalization exceeding $110 billion according to CoinGecko.
President Bukele shared similar sentiments to Ardoino, emphasizing his confidence in the expected outcomes of this partnership. In addition to the collaboration with iFinex, Bukele’s administration is committed to enhancing transparency in the crypto sector. El Salvador recently introduced a Bitcoin tracker, allowing the public to monitor the country’s holdings of the leading cryptocurrency. The tracker revealed that El Salvador currently possesses 5,748 BTC, valued at over $360 million.
El Salvador made history by recognizing Bitcoin as legal tender in 2021, becoming the first country to fully legalize the digital currency. Despite facing criticism from global institutions like the IMF, Bukele’s government has remained steadfast in its Bitcoin-friendly approach and even announced plans to purchase one BTC per day. However, the country has encountered challenges along the way, including reports of issues with the state-controlled Bitcoin wallet Chivo and data leaks associated with the tool. At the time of writing, these problems have not been addressed, but El Salvador continues to actively engage with the emerging crypto industry.
In conclusion, El Salvador’s gamble on Bitcoin has proven successful, silencing critics like Schiff. The nation’s commitment to embracing cryptocurrencies and its partnership with iFinex highlight its determination to establish itself as a leader in this evolving digital landscape.
