Tuesday, May 28, 2024
Home > News > Bitcoin News > Tether-parent iFinex to aid El Salvador’s crypto rules

Tether-parent iFinex to aid El Salvador’s crypto rules

Bitcoin-friendly nation El Salvador is working on a crypto regulatory framework and has enlisted help from a digital asset titan affiliated with the largest stablecoin. 

The parent company of Bitfinex exchange and Tether (USDT), iFinex, reached a partnership with El Salvador to realize the vision of President Nayib Bukele for comprehensive crypto legislation. 

An announcement published on May 13 revealed that iFinex will aid Bukele’s administration in building “a solid home for the digital asset and securities market” within the Central American jurisdiction. Bitfinex and Tether CEO Paolo Ardoino said the collaboration signals new opportunities to mobilize capital and bootstrap tokenized real-world assets like equities. 

Ardoino’s companies, Bitfinex and Tether, are two of the largest and oldest crypto entities. Launched in 2012 and 2014, the firms have pioneered P2P digital asset exchange and stablecoin operations. Tether manages issuance for USDT, crypto’s biggest stablecoin offering, with a market cap of over $110 billion per CoinGecko. 

Echoing similar remarks as Ardoino, President Bukele stressed the country’s confidence regarding the partnership’s expected results. 

“We are proud of this cooperation and believe that this will be an important step for El Salvador to become the new financial center of the world.”

President Nayib Bukele

El Salvador’s Bitcoin tracker

Combined with the iFinex partnership, Bukele’s regime also doubled down on its crypto transparency. As crypto.news reported, El Salvador launched a Bitcoin (BTC) tracker to allow public view access to its stockpile. The platform, which operates a mempool dashboard, confirmed that the country holds some 5,748 BTC valued at over $360 million. 

El Salvador introduced Bitcoin as a legal tender in 2021 and began accumulating the leading cryptocurrency, becoming the first nation to legalize the digital currency fully. Despite scrutiny from world bodies like the IMF, Bukele’s government remained steadfast in its Bitcoin-friendly approach and announced its decision to purchase one BTC per day.

However, its journey has experienced challenges. Citizens reported issuers with the state-controlled Bitcoin wallet Chivo and hackers leaked the tool’s data twice. El Salvador had not addressed these issues at press time, but the country continues to further its involvement with the nascent industry.