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

As a researcher with a background in finance and technology, I’m excited about El Salvador’s ambitious plan to establish a comprehensive regulatory framework for digital assets and securities in partnership with iFinex, the parent company of Bitfinex exchange and Tether (USDT). This collaboration represents a significant step forward for El Salvador in becoming a major player in the crypto space.

El Salvador, known for its acceptance of Bitcoin as legal tender, is developing a regulatory structure for cryptocurrencies with assistance from a leading figure in the digital asset world who is connected to the biggest stablecoin.

As an analyst, I’d rephrase it as follows: IFinex, the parent company of Bitfinex exchange and Tether (USDT), has entered into a partnership with the El Salvadoran government, led by President Nayib Bukele, to bring his vision for extensive crypto legislation to fruition.

On May 13, it was disclosed that iFinex will assist Bukele’s administration in establishing a robust framework for digital assets and securities within Central America. According to Bitfinex and Tether CEO Paolo Ardoino, this partnership opens up possibilities for capital mobilization and the development of tokenized real-world assets such as equities.

Two of the most established and prominent crypto companies, Bitfinex and Tether, were founded in 2012 and 2014 respectively. They have been trailblazers in the field of peer-to-peer digital asset trading and stablecoin management. Tether is responsible for managing the issuance of USDT, the largest and most valuable stablecoin offering on the market, with a market capitalization exceeding $110 billion according to CoinGecko.

In harmony with Ardoino’s statements, President Bukele expressed faith in El Salvador’s belief that the collaboration will yield fruitful outcomes.

As a crypto investor, I’m thrilled about this partnership and have faith that it will mark a significant milestone in El Salvador’s transformation into a global financial hub.

President Nayib Bukele

El Salvador’s Bitcoin tracker

In collaboration with iFinex, El Salvador’s government strengthened its crypto transparency efforts. According to crypto.news, this Central American nation unveiled a Bitcoin tracker, enabling the public to monitor its Bitcoin reserves. The platform, which includes a mempool dashboard, revealed that El Salvador owns approximately 5,748 Bitcoins, valued at around $360 million.

In 2021, El Salvador became the trailblazer by making Bitcoin a valid form of tender, and since then, the government has been amassing the foremost cryptocurrency. The IMF and other global organizations have raised concerns, but the Bukele administration has stayed resolute in embracing Bitcoin. They declared their intention to acquire one Bitcoin each day.

As a researcher studying El Salvador’s adoption of Bitcoin, I have come across some obstacles in their implementation process. The state-controlled Bitcoin wallet Chivo faced criticism from citizens due to reported issues with the platform. Additionally, there were two instances of data leaks from the tool. At the time of writing this report, the government had not publicly addressed these concerns. However, El Salvador remains committed to deepening its engagement in the burgeoning Bitcoin industry.

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2024-05-13 17:26