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El Salvador: First digital asset license awarded to Bitfinex

Central American El Salvador is known as the first country in the world to make bitcoin legal tender. Nayib Bukele, the country's president, often explains how the legalization of bitcoin has benefited the country and has opened Bitcoin embassies around the world. Now the options have moved even further. Based on the law that El Salvador approved in January of this year, it is now possible to issue bonds covered by bitcoin. The bonds are also referred to as " Volcano Bonds". They worked closely with Bitfinex on their preparation, and it is therefore not surprising that their Bitfinex Securities division was the first to obtain a license to issue and subsequently trade these bonds. A whole range of entities, from small companies to governments, can raise capital this way in a regulated environment and tap into investors who are extremely comfortable with crypto assets and tokenized securities. The size of this market is estimated between one and three trillion USD. For management and control purposes, a special subsidiary Bitfinex Securities El Salvador (SA De CV) was established directly in Salvador. This will ensure maximum compliance with all local regulations and at the same time facilitate any control by the state.

Although the situation in El Salvador may seem unfortunate to some, the majority of the population approves of President Bukele's government. From a long-term perspective, this is certainly a risk, but at least it shows other countries a possible path and it also serves as an attraction for tourists. Still better than if they tried to solve everything in the form of CBDC and full control. El Salvador is thus trying to show that it can be a global center of fintech innovation and creates an attractive environment for businesses from all over the world. Central banks don't (everywhere) understand the crypto industry.


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