Tether, the company behind the world’s largest stablecoin USDT, has announced it will move its operations to El Salvador. Since the country introduced Bitcoin as legal tender in 2021, it has emerged as an attractive destination for crypto companies. Tether announced via its own website that it has officially obtained a license as a Digital Asset Service Provider in El Salvador.
Why Tether chooses El Salvador
With this move, Tether is moving all of its subsidiaries to El Salvador, a strategic choice that fits the company’s ambitions.
“This decision is a logical step for Tether as it gives us the opportunity to create a new home, foster collaboration and strengthen our focus on emerging markets,” said Paolo Ardoino, CEO of Tether.
“El Salvador is a beacon of innovation in digital assets. By establishing ourselves here, we are joining a country that shares our vision of financial freedom, innovation and resilience. At the same time, we are strengthening our commitment to empower people worldwide through decentralized technologies,” Ardoino added.
El Salvador’s role in the crypto world
Under the leadership of President Nayib Bukele, El Salvador has positioned itself as a pioneer in crypto adoption. In addition to Bitcoin as legal tender, the country has developed policies to attract technology talent and crypto companies. For example, Bitfinex, a major crypto exchange, also moved its derivatives branch to El Salvador.
With Tether’s move, El Salvador strengthens its position as a hub for blockchain technology. For a country once known as one of the most violent in the world, this represents significant economic and technological progress.
Yet there is criticism of Bukele’s approach. Accusations of human rights abuses and mass incarceration cast a shadow over his policies. In addition, it is doubtful to what extent the local population actually benefits from the Bitcoin success. Bukele himself does not seem to care much about this criticism.
USDT: Importance and controversy
With a market capitalization of $137 billion, USDT is the most widely used stablecoin in the world. It plays a crucial role in the crypto market by providing liquidity and allowing traders to quickly switch between assets without having to rely on traditional banks.
Yet Tether faces controversy, mainly due to a lack of transparency about the reserves backing USDT. Although Tether has indicated that it is open to an audit by one of the “Big Four” accounting firms, this has not yet materialized.
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Source: https://newsbit.nl/stablecoin-uitgever-tether-verhuist-naar-el-salvador/
