Although bitcoin has risen above $20,000, the crypto sector remains vulnerable. Although El Salvador adopted BTC as its official currency, it is now facing several issues. To help the country, the Bitfinex exchange announced that it plans to donate $1.3 million in BTC and USDT to support Salvadoran communities.
Bitfinex donates bitcoin to help Salvadoran small businesses
As the cryptocurrency crisis continues, communities in El Salvador are struggling to stay afloat. Facing this, the trading platform Bitfinex decided to donate 36 bitcoin (BTC), or about $ 734,000 according to the current price of the crypto flagship, and 600,000 tether USDT. This grant specifically targets small businesses and communities in El Salvador.
To complete its project, the crypto exchange made a Notice Thursday in a blog post. According to him, bitcoin donations will be sent directly to the recipients’ bitcoin wallets. Of course, his wallet Chivo too. For the time being, the grant is particularly focused on certain communities and various specific initiatives and projects. Therefore, the beneficiaries are usually green business initiatives that address pollution. And the communities that are centered are Ilopango, Apopa and Soyapango.
El Salvador adopted bitcoin on September 7, 2021 and since that day, BTC has been legal tender in the country. To date, the Salvadoran government continues to hoard bitcoin. Especially since it dropped below $19,000. According to Paolo Ardoino, technical director of Bitfinex, this donation aims to show the ability of the first crypto to bring financial freedom.
Bitfinex supports the El Salvador Volcano Token Project
In its development plan, El Salvador decided to launch the Volcano Token project. In the same blog post, crypto exchange Bitfinex announced that it supports the country’s initiative to launch its own crypto. Thus, the exchange noted that Bitfinex Securities is working as a fintech provider on Nayib Bukele’s country volcano token. As a result, the native crypto will emerge alongside bitcoin (BTC).
Bitfinex will therefore provide a necessary framework so that the token can be traded on liquid and efficient markets. However, only Bitfinex Securities clients will have access to this token, in specific jurisdictions. Therefore the signal will not be available to US residents.
The exchange’s parent company, Ifinex Inc, is also working closely with the Salvadoran government to create a regulatory framework for cryptocurrencies. The goal is to issue, operate and regulate digital assets in El Salvador. According to the company, this initiative will help foster the growth of digitized financial instruments in the country.
A donation of $1.3 million in BTC and USDT to El Salvador may help the country cope with the falling cryptocurrency markets. The bitcoin price is still volatile and investors are suffering heavy losses. The Bitfinex initiative should therefore help the country strengthen its financial independence.
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The world is changing and adaptation is the best weapon to survive in this turbulent world. As a crypto community manager at the base, I am interested in everything directly or indirectly related to the blockchain and its derivatives. To share my experience and express an area of interest to me, there is nothing better than writing articles that are informative and entertaining at the same time.