iFinex Inc., the parent company of the Bitfinex digital token trading platform and Tether, announced today that it has entered into an agreement with the government of El Salvador.
The agreement between the two entities was closed on November 19 and provides for collaboration in the creation of digital assets and the regulatory framework for them and also for issuing and operating digitized financial instruments in El Salvador. iFinex will be tasked with bringing its years of experience operating an exchange of digital assets and various activities in cryptoeconomics.
How will iFinex help the government of El Salvador?
THE iFinex will help the government from El Salvador to create and implement laws, properly balanced cryptocurrency regulations, rules and guidelines, especially with regard to digitized financial instruments for promote the growth of the sector of cryptocurrencies in El Salvador.
In addition to assisting in establishing initial guidelines, iFinex will also provide insight and experience in complying with and advancing cryptocurrency laws and regulations; work cooperatively and effectively with law enforcement and regulators; and issuance and facilitation of trading of digital assets, including cryptocurrencies.
After the enactment of El Salvador’s new regulatory regime, it is intended that iFinex will receive its first license. The Government of El Salvador has pledged to work exclusively with the platform as it prepares for the launch of its much-anticipated first debt to build energy infrastructure for the development of bitcoin mining (ie, the ‘Volcano Bond‘).
“IFinex and its management team are excited to participate in a project, together with the government of El Salvador and Blockstream, in what could be the birth of new global opportunities for governments and private sector companies to raise capital and tokenize these actions.,” said Paolo Ardoino, CTO of Bitfinex Securities.
The two companies are already cooperating to develop solutions that make life easier for investors. For example, it is now possible to trade Tether Dollars (USDT) on a Bitcoin sidechain, the Liquid Network, lowering fees and increasing privacy.
“The government of El Salvador has proven to be at the forefront of adopting bitcoin as a boon to the independent wealth of its citizens. We are excited to see the “Volcano Bond” come to fruition and available at iFinex, marking a turning point in finance history, with a government that will use the natural, renewable energy provided by the local natural environment to extract bitcoins and secure a bond supply. ”
“We are proud of this partnership with Blockstream and Bitfinex. I’m sure that in a few years this will be seen as a fundamental step towards becoming the newest financial center in the world.” said Nayib Bukele, President of El Salvador.
Founded in 2012, Bitfinex is a digital asset trading platform offering next-generation services to digital currency traders and global liquidity providers. In addition to a suite of trading resources and charting tools, Bitfinex brokerage provides access to peer-to-peer financing, an OTC market and margin trading for a wide selection of digital assets. Bitfinex’s strategy focuses on providing unrivaled support, tools and innovation to professional traders and liquidity providers around the world.