Tether, the issuer of the widely-used USDT stablecoin, has announced the relocation of its headquarters to El Salvador, following the successful acquisition of a license to operate as a digital asset provider in the country.
In a statement released on January 13, Tether highlighted the country’s “forward-thinking policies, favorable regulatory environment, and growing Bitcoin-savvy community” as key factors behind the move. CEO Paolo Ardoino emphasized that establishing a presence in El Salvador aligns with Tether’s mission of promoting financial freedom, innovation, and resilience.
El Salvador has garnered significant attention in the cryptocurrency world since its president, Nayib Bukele, made Bitcoin legal tender in 2021. Tether has already engaged in several local initiatives, including supporting the use of geothermal energy for renewable power, and has collaborated with the government on efforts to attract crypto firms to the country. Ardoino described the decision to relocate as a “natural progression” for Tether, allowing the company to build a new base, foster collaboration, and concentrate on emerging markets.
President Bukele, a well-known Bitcoin advocate, has previously referred to Bitcoin adoption as a “net positive” for El Salvador, despite acknowledging that progress has been slower than expected. The Salvadoran government holds more than 6,000 BTC, valued at over $550 million as of December 2024. However, a recent survey indicated that more than 90% of Salvadorans do not use Bitcoin for transactions.
Bukele, who is often referred to as the “world’s coolest dictator,” has earned praise for reducing crime rates in the country but faced criticism over human rights concerns, including accusations of detaining political opponents.
El Salvador recently entered into a $1.4 million loan agreement with the International Monetary Fund (IMF), which includes stipulations that businesses may adopt Bitcoin on a voluntary basis, and taxes paid in Bitcoin will be converted to the country’s official currency.
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