Tether has commenced plans to move to El Salvador after obtaining a license in the Central American nation.
According to a statement, Tether made this move to capitalize on the nation’s growing acceptance of blockchain technology. Furthermore, Tether’s CEO, Paulo Arduino, and other management members are looking to relocate there permanently. According to the CEO, the move would be a game changer as Tether plans to make the country its headquarters.
“This move to El Salvador will be the first time we’re going to have a physical headquarters,” the CEO said in a statement.
Stablecoin Market Regulatory Resistance
Although the stablecoin market continues to rise in prominence, it has faced resistance from regulators and financial key players. Amidst the market’s boom, there are concerns regarding the exposure of the broader financial market to more risks, as stablecoins serve as a bridge between the crypto world and traditional financial markets. Interestingly, Tether has faced such scrutiny, with questions regarding its reserve popping up now and then. Tether has confirmed that the majority of its stablecoin is backed by fiat currency reserves held with Cantor Fitzgerald, a well-known Wall Street brokerage.
Tether and El Salvador’s Growing Relationship
Over the years, El Salvador’s president, Nayib Bukele, has been a cryptocurrency maxi. He announced his intention to make Bitcoin a legal tender in 2021. Since then, various crypto firms and businesses have forged ties with the country’s government. In 2023, Tether announced that it would contribute to one of El Salvador’s energy projects, improving the country’s growing relationship with cryptocurrency.
READ MORE: Crypto Users at Risk After 7 Million OpenSea Emails Go Public
