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Stock image. A Bitcoin sign outside a store where cryptocurrency is accepted as a payment method in El Salvador
SAN SALVADOR, March 23 (Archyde.com) – El Salvador is seeking the support of Binance, a digital currency exchange platform, for the project to implement bitcoin as legal tender and the unprecedented issuance of bonds backed by the cryptocurrency, the country’s ambassador to the United States said Wednesday.
Zhao Changpeng, CEO of Binance, the world’s largest digital currency exchange, began a visit to El Salvador on Wednesday in which he plans to meet with government officials and President Nayib Bukele.
“The fact that such a person (Zhao) comes also gives full support to all the economic freedom that we are seeking through the implementation of bitcoin as legal tender, with the sale of volcano bonds,” Milena Mayorga told reporters.
Amid the volatility of bitcoin and the instability in the financial markets due to the conflict between Russia and Ukraine, El Salvador this week postponed the issuance of 1,000 million dollars in bonds backed by the cryptocurrency, with which it intends to finance the construction of ” Bitcoin City” and buy more cryptocurrencies.
In addition, half a year following becoming the first country in the world to adopt bitcoin as legal tender, El Salvador still has problems with the development of the official application to exchange the cryptocurrency and organizations such as the IMF have warned that finances of the country may be affected.
Today, few businesses accept bitcoin as a form of payment and 70% of the population, according to a recent survey, distrusts the project. However, Zhao, considered one of the five richest people in the world in crypto assets according to a Forbes list, defended Bukele’s project.
“I think that El Salvador is the leading country (…) pioneer in this industry. In a few decades we will see this presidency, it will be a heroic presidency for the financial future,” he said.
(Reporting by Nelson Rentería; Editing by Diego Oré)
