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LATIN AMERICA ADVISOR

Financial AMERICA ADVISOR

A daily publication Of the dialogue

January 28, 2025

How Important Is Tether’s Move to El Salvador?

Cryptocurrency firm Tether announced this month that it is moving its headquarters to El Salvador, where President Nayib Bukele has embraced digital currencies. // File Photo: DrawKit Illustrations via Unsplash.com.

Q

A

Carol Alexander, professor of finance at the University of Sussex: “Although Tether refused proper auditing of its reserves for many years, it now publishes audited reserves on its transparency page showing assets now exceeding liabilities by more than $6 billion. Having invested $250 million into the Volcano Energy project in El Salvador, the relocation of its headquarters indicates even more substantial investments in El Salvador’s economy are to come. The Tether-El Salvador connection dates back to 2021, when Bitfinex began managing the Bitcoin reserve (Tether and Bitfinex are both owned by iFinex). But in 2023, El Salvador granted Binance, a rival Chinese- run exchange a similar license. Tether’s strategic base in El Salvador will help promote Bitfinex over Binance. However, I see potential friction between Tether and the U.S. government. First, Tether works to disrupt the conventional financial system, and its aim to democratize cross-border transactions could threaten…”

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ABOUT THE financial services ADVISOR

Covering Latin America’s banking and insurance sectors, remittances trends and data, micro lending issues, new technologies in the industry, anti-money laundering regulations, and much more, the Inter-American Dialogue’s biweekly Financial Services Advisor, a sister publication of the Latin America Advisor, gives readers fresh insight and diverse viewpoints from financial sector leaders. To subscribe or for more information, contact Gene Kuleta, editor of the Advisor, at gkuleta@thedialogue.org.

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Staff

Gene Kuleta
Editor
P. 202.463.2920
E. gkuleta@thedialogue.org

Carl David
Goette-Luciak
Reporter

Nili Blanck
Reporter

board of advisors

Ernesto Armenteros
Vice Chairman
of the Board,
Banco de Ahorro y Credito Union

Jimena Blanco
Chief Analyst,
Verisk Maplecroft

Richard Child
CEO,
Mattrix Group

Michael Diaz
Partner,
Diaz, Reus & Targ, LLP

Ernesto Fernández Holmann
Chairman of the Board,
Ayucus

Desiree Green
Vice President,
Int’l Gov’t Affairs,
Prudential Financial

Earl Jarrett
Deputy Chairman & CEO
The Jamaica National Group

Barbara Kotschwar
Professor of Political Economy,
Georgetown University

Thomas Morante
Attorney,
Carlton Fields

Manuel Orozco
Senior Fellow,
Inter-American Dialogue

Adalberto Palma Gómez
Senior Partner,
Aperture SC

Rodolfo Pittaluga
Adjunct Professor,
Florida International University
College of Law

Roberto Teixeira da Costa
Founder & Board Member Emeritus, CEBRI

Mario Trujillo
CEO,
DolEx Dollar Express

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