Tether has announced plans to relocate to El Salvador after securing a Digital Asset Service Provider (DASP) license. According to the announcement, the firm intends to leave its present Virgin Islands location, shifting to El Salvador to leverage its crypto-friendly environment.
El Salvador began its Bitcoin first when it announced the asset as a legal tender. President Nayyib Bukele used the asset to improve the country’s economy, adding financial inclusion as its other benefits. The president disregarded pressure from the traditional finance sector and the wider populace, moving forward with his quest.
Tether makes a strategic move
El Salvador has become a destination for companies in the blockchain industry, building a crypto-friendly hub for financial inclusion. The increase in scrutiny into stablecoins, particularly in the United States and Europe has installed the location as the go-to.
Tether CEO Paolo Ardoino mentioned the collaboration will help both the country and Tether. “This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets,” Ardoino said.
While the relocation is set to happen anytime soon, not all of the company’s staff will be making the trip. Some of them work remotely, leaving CEO Paolo Ardoino and some other executives on the bus to El Salvador.
Benefits of the move
With the move, Tether will be hoping to establish its first physical headquarters in the country, contributing to its economy. It will also aid President Bukele’s move to push for crypto adoption among the remaining skeptics.
Presently, about 7% of the country actively uses Bitcoin, with the country holding profits of about $300 million after the asset crossed the $100,000 mark. The relocation may also trigger other firms to make the move. Meanwhile, other countries may also be looking at El Salvador as an example to attract crypto firms.
A recent Reuters report noted that Tether intends to hire about 100,000 Salvadorians in the next couple of years. This will open up employment opportunities for the residents, with a potential for more in the future.