Cryptocurrency exchange Bitfinex has donated 36 Bitcoin (BTC) and $600,000 in Tether (USDT) to small businesses in El Salvador as part of a broader commitment to support economic development in neighborhoods that have struggled with gang-related violence. .
The funds are being distributed in the socially disadvantaged communities of Ilopango, Soyapango and Apopa, where gang violence and extortion of small business owners is most common, Bitfinex announced Thursday. The donations, which will be funded through recipients’ Bitcoin wallets, including the state-sponsored wallet Chivo, will support environmentally friendly business initiatives that employ local workers.
In addition to funding the donations, Bitfinex parent company iFinex Inc. is working with the Salvadoran government to create a new regulatory framework for digital assets and securities, the company said.
Since Bitcoin became legal tender in June 2021, El Salvador has increased its treasury reserves of the digital asset through several “bust purchases” in recent months. The Salvadoran government now owns 2,301 BTC for a cumulative value of $46 million.
El Salvador just bought the dip!
500 coins at an average USD price of ~$30,744 #bitcoin
– Nayib Bukele (@nayibbukele) May 9, 2022
Although signs of adoption by businesses have been mixed, the Chivo wallet appears to be gaining popularity for its role in facilitating remittances. Salvadorans living abroad sent $52 million in remittances through the first five months of 2022, according to the Central Reserve Bank of El Salvador.
Among its many BTC initiatives, El Salvador is planning a $1 billion offering of so-called Volcano Bonds. The Bitcoin-backed bond will be tokenized by Bitfinex and Blockstream, with proceeds going towards the development of Bitcoin City. As Cointelegraph reported, the date for the bond issue is unclear.
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