- Stablecoin issuer Tether is moving operations to El Salvador after receiving approval as a Digital Asset Service Provider, with CEO Paolo Ardoino and COO Claudia Lagorio becoming naturalised citizens.
- The company views El Salvador as an ideal hub for digital finance innovation due to its forward-thinking policies and favourable regulatory environment for cryptocurrency operations.
- Despite El Salvador’s pioneering Bitcoin adoption as legal tender, President Bukele acknowledged slower-than-expected public uptake while the nation’s Bitcoin investments have yielded significant returns, turning US$135 million into over US$400 million.
According to a statement from January 13, stablecoin issuer Tether and “its subsidiaries” are relocating from the British Virgin Islands. Following the approval as a Digital Asset Service Provider (DASP) and stablecoin issuer, the company is making the move to El Salvador.
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The country is known for its Bitcoin-friendly president Nayib Bukele, who announced back in 2021 that the country would formally adopt Bitcoin as legal tender.
Tether declared its support for El Salvador and its renewable energy projects in 2023. Tether CEO Paolo Ardoino and COO Claudia Lagorio also became naturalised citizens in 2024 and bought real estate in the country.
Bitcoin-Savvy El Salvador
In the press release, Tether said the move to El Salvador would “strengthen Tether’s position in one of the world’s most forward-thinking markets”, while also helping the company to develop “cutting-edge solutions” in what it called a dynamic and thriving setting.
El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation. With its forward-thinking policies, favorable regulatory environment, and a growing Bitcoin-savvy community, the country has become an ideal destination for companies leading the digital finance revolution.
TetherArdoino commented, saying that it was a “natural progression” for the company which allows it to establish a new base while also targeting emerging markets.
By rooting ourselves here, we are not only aligning with a country that shares our vision in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies.
Paolo ArdoinoBukele welcomed Tether to the country with…a Tweet, of course.
Bukele Says BTC Adoption “Slow”
Despite the initial hype around El Salvador adopting Bitcoin as legal tender, Bukele admitted in an interview with Time Magazine in August 2024, that things have been progressing slower than expected.
Most citizens, Bukele said, continue to prefer the nation’s primary currency, the US Dollar, over Bitcoin.
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Despite a slow uptake, the country still has benefitted from its BTC investments. As of December 30, 2024, the country had 6,002 BTC, and appears to continually add more to its treasury.
According to the president, they turned a US$135 million (AU$217.7 million) investment into at least US$400 million (AU$645.2 million) as of last year.
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