El Salvador made history in September 2021, becoming the first nation to adopt Bitcoin (BTC) as legal tender. Since then, the Central American country has been regularly buying bitcoins, almost every time the price of the crypto king drops significantly. The latest Salvadoran bitcoins, however, were not purchased, as it was the crypto exchange Bitfinex that gave them away.
El Salvador donates over $1.35 million in cryptos
El Salvador is going out of its way to “Buy the Dip” on Bitcoin whenever the opportunity arises. This makes that, little by little, the Central American country had accumulated nearly 2,400 bitcoins.
This figure is actually technically exceeded now, thanks to the generosity of the cryptocurrency exchange platform Bitfinex. Indeed, in a statement issued this July 14, 2022, the crypto exchange announces that it is providing 36 BTC (or about $750,000) and 600,000 USDT (or as much dollars) to serve the Salvadorans.
“Bitfinex has donated 36 BTC and 600,000 USDT to help communities and small businesses in El Salvador. Let’s aim to bring prosperity and economic freedom to more and more communities through Bitcoin and Tether!”
Bitfinex wants to help El Salvador issue its Bitcoin-powered ‘Volcano bonds’
According to the crypto exchange’s announcement, the funds are primarily intended for “small businesses in the country’s most disadvantaged communities.” In fact, the bitcoin donations are transferred directly into the recipients’ Chivo wallets (or other BTC wallets).
“This funding demonstrates in real time the potential of Bitcoin to bring prosperity and economic freedom. By providing Bitcoin and Tether to local communities in El Salvador, we will provide vital support to small businesses. All while countering the effects of the gang violence that has swept the country.”Paolo Ardoino, CTO of Bitfinex
It is worth remembering that the iFinex group, behind the Bitfinex exchange, is actively acting as an advisor to support El Salvador in its $1 billion bond issue, based on a Bitcoin guarantee. The so-called “Volcano bonds”, as Nayib Bukele, the Salvadoran president, has dubbed them.
The current donation announcement also reveals in passing that these future Volcano bonds will only be accessible via the Bitfinex Securities branch of the crypto exchange. Moreover, residents of the United States will not have, a priori, access to them.
Initially scheduled for a March 2022 issuance, these Bitcoin-based bonds have been delayed, however. It must be said that the Terra (LUNA), Celsius, 3AC fund disasters – and the crypto market crash they brought – didn’t help either.