El Salvador attracts large technology companies
El Salvador has become a magnet for large technology companies as a result of building a favorable ecosystem for investment, with laws that grant tax benefits and promote innovation, and a considerable improvement in security.
President Nayib Bukele emphasized at a press conference that the nation is “rapidly becoming a technology hub”, as evidenced by the recent announcements of the firms Tether and Rumble.
Tether, the creator of the world’s largest stable currency, with a market value of $137.49 billion, announced on Monday that it is about to complete all the procedures to move all its operations and those of its subsidiaries to El Salvador, after acquiring a Digital Asset Services Provider license. The President announced that the company will build its own tower in the country.
“Tether is a very large company. Just for context, its market value is four times our GDP, which is not that it is going to put offices here, it is going to move its headquarters here. Having a large company like Google to put its offices in El Salvador is positive, there are several large companies like Microsoft that have been operating for a while, for example. But here it is not that they are going to open an office, it is that they are going to move their company here, that is to say, the main headquarters of Tether in the world is going to be here in El Salvador. Not only of Tether, but of all its related companies”, he said.
Meanwhile, Rumble, Canada’s leading video platform and cloud service provider, announced that it will start operations in the territory in the coming months.
“Rumble is also going to have their offices here. Not their headquarters, but we are trying to convince them to do so,” the head of state added.
He also announced that a Salvadoran chip manufacturing company will soon be set up near the airport.
However, the president pointed out that there is still work to be done to turn the country into this technological hub, especially in the training of the specialized talent required by companies.
Mario Padilla, executive director of the Salvadoran Chamber of Information Technology and Communications (Casatic), agrees with President Bukele on this deficit, but also points out that important work is being done by the government to provide training.
“The government is taking accelerated steps and we know, because we participated in the process, to create this mass of professionals. Only the more specialized profiles take more time to be built,” he mentioned.
It also confirms the strong movement of technology companies coming to El Salvador. Only in the second half of last year they received as a guild four foreign companies that are opening operations in the territory, and they are aware of at least 25 that arrived in the course of 2024.
“Casatic shares the government’s vision of turning the country into a technology hub, but there is still work to be done,” he said.
Tether and its subsidiaries are about to complete all formalities to relocate to El Salvador, following the successful acquisition of a Digital Asset Service Provider (DASP) license and as a stablecoin issuer, marking a step in Tether’s journey to foster global Bitcoin adoption. This strengthens Tether’s position in one of the world’s most forward-thinking markets and fosters the development and implementation of cutting-edge solutions more efficiently in a dynamic environment where innovation thrives. It underscores the company’s dedication to leveraging Bitcoin’s transformative potential as it drives growth in emerging markets.
El Salvador is rapidly establishing itself as a global hub for digital assets and technology innovation. With its forward-thinking policies, favorable regulatory environment, and a growing Bitcoin-savvy community, the country has become an ideal destination for companies leading the digital finance revolution. By embracing blockchain technology and digital currencies, El Salvador is fostering an ecosystem that encourages innovation and attracts investment in the broader financial and technology sectors. This strategic positioning is helping to shape the future of financial systems, making the country a key player in the global fintech landscape.
Tether not only supports El Salvador’s vision for financial freedom but also strengthens its operational agility and ability to innovate. This move reflects Tether’s dedication to providing reliable, accessible, and transparent financial solutions to its global user base.
Key Highlights:
Encouraging Bitcoin Adoption: El Salvador’s Bitcoin-first economy aligns seamlessly with Tether’s mission to empower individuals and businesses through digital currency.
Expanding Emerging Market Focus: Tether’s move to El Salvador positions it to further scale its efforts in supporting financial inclusion leveraging bitcoin and stablecoin adoption in underserved regions.
Freedom to Innovate: The move enhances Tether’s flexibility to explore groundbreaking solutions in a supportive regulatory and business environment.
Securing Licensing Approval: Tether is proud to establish a headquarters for the entire group, positioning Tether within a forward-looking jurisdiction that embraces innovation and supports its long-term vision.
“This decision is a natural progression for Tether as it allows us to build a new home, foster collaboration, and strengthen our focus on emerging markets,” said Paolo Ardoino, CEO of Tether. “El Salvador represents a beacon of innovation in the digital assets space. By rooting ourselves here, we are not only aligning with a country that shares our vision in terms of financial freedom, innovation, and resilience but is also reinforcing our commitment to empowering people worldwide through decentralized technologies.”
As it takes these next bold steps, the company looks forward to working closely with El Salvador’s government, businesses, and communities to shape the future of financial technology.
El Salvador Business Management
Source: Diario El Salvador
