36 BTC and 600 000 USDT are intended to help small businesses and communities in the country

Bitfinex exchange to donate $1,3 million in cryptocurrency to El Salvador

15.07.2022 - 12:30

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What’s new? Cryptocurrency exchange Bitfinex will donate 36 bitcoins ($755 676 at the Binance rate as of July 25, 13:30 UTC) and 600 000 Tether (USDT) stablecoins to help small businesses and communities in El Salvador. The funds are primarily intended for businesses in the most socially disadvantaged areas of the country — Ilopango, Soyapango, and Apopa.

Bitfinex’s blog

What else does the blog say? Bitfinex CTO Paolo Ardoino noted that this initiative would provide vital support to small businesses and mitigate “the effects of gang violence that has swept across the country.” He added:

“This funding demonstrates in real time bitcoin’s potential to bring prosperity and economic freedom.”

Donations will go to the recipients’ bitcoin wallets, including the state-supported Chivo. According to a report by the US National Bureau of Economic Research (NBER), as of April 2022, a third of Salvadoran citizens installed Chivo, but more than half of them stopped using their wallets after spending a welcome bonus of $30 in BTC.

The exchange’s parent company, iFinex, is reportedly cooperating with the Salvadoran government to develop a regulatory framework for cryptocurrencies.

Bitfinex, along with Blockstream, will also act as a platform for the tokenization of El Salvador’s bitcoin bonds, Vulcano Bonds. The issuance of $1 billion worth of securities was postponed for the second time in early July. The Ministry of Finance explained that it was “not the right time” to issue such investment products.

Bitcoin in El Salvador. El Salvador recognized BTC as legal tender last September, following which the authorities invested in the asset on several occasions. The latest bitcoin purchase of $1,5 million was reported by the country’s president Nayib Bukele on July 1. The state holds a total of 2381 BTC ($49,97 million) in its accounts.

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