Tether, the issuer of the widely used stablecoin, has announced plans to relocate its operations, including its headquarters and subsidiaries, to El Salvador following the acquisition of an official license to operate within the country.
In a statement dated January 13, Tether confirmed it had been granted authorization as a digital asset service provider and stablecoin issuer under El Salvador’s regulatory framework. The company cited the nation’s progressive policies, favorable regulatory conditions, and a rapidly growing Bitcoin-friendly community as key factors behind the decision.
“This move is a significant milestone for Tether, enabling us to create a fresh base, enhance partnerships, and deepen our focus on emerging markets,” said Tether CEO Paolo Ardoino. He added:
“Establishing roots in El Salvador aligns us with a nation that shares our vision of financial freedom, innovation, and resilience. It also reinforces our commitment to empowering people globally through decentralized technology.”
Strengthened Ties with El Salvador
Tether’s relocation comes amid reports that CEO Paolo Ardoino and COO Claudia Lagorio became naturalized citizens of El Salvador in 2024 after acquiring property there. The company has yet to respond to additional queries regarding this announcement.
A Nation Leading Bitcoin Adoption
El Salvador gained international attention in 2021 when President Nayib Bukele declared Bitcoin legal tender. Since then, the country has cultivated strong relationships with blockchain and cryptocurrency companies. In 2023, Tether revealed plans to support one of El Salvador’s renewable energy initiatives, including geothermal energy projects.
Ardoino has frequently engaged with President Bukele, echoing the leader’s calls for fostering innovation and encouraging foreign investment. Social media posts suggest the two have met on several occasions to discuss shared goals.
Despite the ambitious push for Bitcoin adoption, Bukele acknowledged in a 2024 interview that the benefits have been somewhat less impactful than initially hoped. However, he characterized the shift as a “net positive” for the country. As of December, the Salvadoran government reportedly held over 6,000 Bitcoin, valued at more than $550 million at the time.
Controversial Leadership
Since assuming office in 2019 and securing reelection in 2024, Bukele has garnered praise for reducing the country’s crime rates. Yet, his administration has faced criticism over alleged human rights violations and the detention of political opponents. Bukele, who once described himself as the “world’s coolest dictator,” remains a polarizing figure in the global arena.
Tether’s decision to relocate underscores El Salvador’s growing reputation as a hub for cryptocurrency innovation and adoption, further cementing the country’s role in the evolving digital asset landscape.
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