Changpeng Zhao, founder of Binance, is visiting El Salvador. The government of Nayib Bukele has asked for the platform’s help to accelerate the adoption of Bitcoin (BTC) on Salvadoran soil. However, the country’s president assures that his exchanges with Zhao will not involve the issuance of Bitcoin bonds.
El Salvador turns to Binance after adopting Bitcoin (BTC)
El Salvador is claiming the support of Binance, one of the leading cryptocurrency exchange platforms. Milena Mayorga, the country’s ambassador to the United States, assures that the Salvadoran government has recently been in contact with Changpeng Zhao, founder of the exchange, our colleagues at Reuters report.
According to the ambassador, El Salvador has asked for Binance’s help in pushing the adoption of Bitcoin (BTC) in its territory. For the record, the nation adopted the cryptocurrency as its second legal tender in September 2021.
Since then, the government has been ramping up initiatives to convince the population to embrace Bitcoin. Most notably, Nayib Bukele’s administration has offered $30 in Bitcoin to everyone who sets up the Chivo Wallet. A discount on fuel prices was also offered to people who pay in cryptocurrencies.
As shown in several videos shared by the ambassador on Twitter, Changpeng Zhao recently arrived in El Salvador to exchange with the government. The Binance executive is scheduled to meet with Nayib Bukele this Thursday, March 24, 2022.
At a press conference, Milena Mayorga welcomed the Binance CEO’s presence in El Salvador, several local media outlets, including Infobae, report. According to her, Changpeng Zhao is “fully supportive of all the economic freedom we seek,” including through the bonds backed by the country’s bitcoin reserve.
For his part, Changpeng Zhao congratulated the Bukele administration on the adoption of Bitcoin (BTC) as a legal tender:
“I believe El Salvador is a country […] pioneer in this industry. In a few decades, we will look back at this presidency as a heroic presidency for the financial future.”
Nayib Bukele denies seeking Binance’s help with Bitcoin bonds
Shortly after the ambassador’s press conference, Nayib Bukele clarified the purpose of the Binance founder’s visit. On his Twitter account, the El Salvador president assures that Changpeng Zhao’s visit has nothing to do with the Bitcoin bond issue.
“I am meeting Changpeng Zhao tomorrow to discuss OTHER matters,”Nayib Bukele assures.
He clarifies that the bonds will not be issued with the support of Binance. As previously announced, the government will turn to Bitfinex, a cryptocurrency exchange platform dedicated to professional traders, to complete the project.
Expected in March, El Salvador’s Bitcoin bonds will finally wait a few more months. In an interview, Alejandro Zelaya, El Salvador’s Minister of Finance, estimates that they could be overdue until September 2022.
“We are ready to do it, but we are waiting for the right time,”says Alejandro Zelaya, interviewed on the television program Frente a Frente.
According to Nayib Bukele, the launch of the bonds has been delayed by a subject considered a priority by his government, the pension reform. Contacted by our colleagues of Bloomberg Línea, Bitfinex says it is waiting for the approval of the digital securities law before claiming an operating license. Nevertheless, the exchange has already opened a dedicated subsidiary in El Salvador.