Cryptocurrency exodus to El Salvador 🇸🇻

Happy Thursday, missionaries!

Today we’re diving into what may be one of the most fascinating and least understood stories of 2025 – El Salvador’s transformation into the newest crypto powerhouse.

We look

• Why is the third largest cryptocurrency in the world abandoning the British Virgin Islands to El Salvador?

• How did $1.3 billion IMF negotiations spark an unexpected twist?

• The fascinating network linking Trump’s cryptocurrency ambitions, his vice president’s investments, and Bukele’s grand plan

• What happens when a Bitcoin outlier decides to think big

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2021 — When El Salvador introduced legalized Bitcoin, the cryptocurrency world lost its collective mind. Critics described it as a disaster waiting to happen.

Bitcoin purists hailed it as the dawn of a new monetary era.

And the IMF… well, the IMF gritted its teeth and started writing tough letters.

Three years later, something unexpected happens in this small Central American country.

While everyone was obsessed with Bitcoin ETFs and Trump’s return to the political stage, El Salvador was organizing what could be an interesting pivot in cryptocurrency history.

A country that once imposed acceptance of Bitcoin is now doing something far more subtle — and perhaps far more profitable.

Cryptocurrency companies are moving to El Salvador.

A carefully orchestrated transformation could turn this former Bitcoin-cap country into the newest (and most strategic) financial center in the cryptocurrency space.

It all started with negotiations worth $1.3 billion that no one expected…

For many years, El Salvador’s cryptocurrency identity has been synonymous with one thing: its unwavering commitment to Bitcoin.

6,029 Bitcoin

These are El Salvador’s current Bitcoin holdings, which are worth $599 million.

Even more impressive is that they made a 117% increase in their investment, having purchased at an average price of $45,750.

This is not bad for a country that should have made a catastrophic financial mistake.

When Nayib Bukele, the country’s president, first introduced legal Bitcoin, the IMF was, to put it mildly, not impressed.

The organization, which has historically had significant influence on developing economies through its lending programs, saw Bitcoin adoption as a threat to financial stability.

The risks were high: El Salvador is required A $1.3 billion loan package from the International Monetary Fund.

But negotiations stalled for four years.

The main point of contention? The country’s aggressive stance on Bitcoin, particularly its law requiring all businesses to accept Bitcoin as payment.

The IMF’s concerns were not entirely unfounded.

A Study 2024 It showed that only 7.5% of El Salvador’s population actively uses Bitcoin for transactions, despite the mandatory acceptance law.

Implementation costs were significant, including developing a state-run Chivo wallet and a nationwide Bitcoin ATM network.

What’s interesting?

By late 2024, something had to give.

El Salvador needed an IMF loan, but Bukele — who was recently re-elected and holds paper profits from his bitcoin strategy — wasn’t about to abandon cryptocurrencies entirely.

Instead, he orchestrated what may be the most brilliant pivot in cryptocurrency history:

• Accepting Bitcoin will become optional rather than mandatory

• The state-run Chivo wallet will be abolished

• Government purchases of Bitcoin will continue, but more strategically

• A new focus will emerge on the broader cryptocurrency infrastructure

This was not a surrender, but a transformation.

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Now comes El Salvador’s rapid transformation into a cryptocurrency hub, just as the country appears to be softening its stance on Bitcoin.

But appearances can be deceiving.

When Tether announced its move to… El Salvador in January 2025, It wasn’t just another reshuffle at the company.

This world’s third-largest cryptocurrency by market cap — a $140 billion behemoth that facilitates a significant portion of all cryptocurrency trading — is choosing to leave the British Virgin Islands for Central America.

The move came with a lot of luggage.

Tether has faced its share of scrutiny – from $18.5 million Settles with New York State in 2021 amid ongoing questions about its reserves. However, El Salvador welcomed them with open arms, granting them a digital asset service provider license.

Why? Because Tether offers more than just its headquarters – it offers an entire ecosystem.

Tether is not alone.

Bitfinex derivatives (Long time ally of Tether) swap Her address is in Seychelles to El Salvador, and her DASP license is secured. Their stated goal? To help transform El Salvador into a “financial services hub for Latin America.”

Bitget followed suit With a Bitcoin service provider license, Signs Their intention is to offer a full range of crypto services in the country.

And now rumble enters?

Yes, the right-leaning video platform that recently acquired $775 million Investing from Tether.

Nayib Bukele encouraged Rumble CEO Chris Pavolski to move.

This isn’t just a tech company — it’s a company backed by some of the most influential figures in American tech policy:

• Peter Thiel (co-founder of PayPal)

• J.D. Vance (Trump’s Vice President-elect)

• A 2021 financing round valued at $500 million

Now, after allocating a portion of its reserves to Bitcoin and receiving massive Tether investments, Rumble is eyeing El Salvador as a potential new home.

El Salvador is building an entirely new financial infrastructure. The National Digital Assets Commission has already signed agreements with the National Securities Commission of Argentina and is in talks with 25 other countries.

Each agreement opens new lanes for:

The same President-elect Trump who criticize Bukele at the Republican National Convention (“sent all his criminals to the United States”) now positions himself as crypto’s greatest ally.

He openly plans to make America the cryptocurrency capital of the world, and has his own DeFi project called World Liberty Financial. projectbacked by Justin Sun’s $30 million investment.

However, companies moving to El Salvador include some with deep ties to Trump’s own circle.

Consider a potential Rumble move. This isn’t just another tech company – it’s backed by Trump’s Vice President-elect J.D. Vance through Naria Capital. Peter Thiel, an early Trump supporter, is also an investor. Now, following Tether’s investment, they are eyeing El Salvador as a potential home.

This creates a wonderful dynamic:

Trump wants to make America the home of cryptocurrencies.

The company backed by his vice president may move to El Salvador.

Bukele maintains diplomatic silence.

The IMF is stuck in the middle.

We are eagerly waiting to see how this whole thing will play out.

Since January 2023, El Salvador has systematically built something more ambitious than a Bitcoin-only economy. Through a series of calculated moves, it is laying the groundwork to become the premier cryptocurrency financial center in Latin America:

• The Digital Asset Securities Act created a comprehensive framework for tokenized securities

• A new regulatory body, the National Digital Assets Commission, has been created

• A sophisticated licensing system for crypto companies has been implemented

• Cross-border partnerships are being negotiated with more than 25 countries

Now the results are starting to appear.

Not random corporate transfers.

We see a calculated ecosystem being built. Each company brings its own piece to the puzzle:

• Rope: The backbone of fluidity

• Bitfinex: trading infrastructure

• Bitget: retail services

• Rumble: Content and Media Presence

The scale of what is at stake becomes clear when we dig deeper into the numbers:

• Daily trading volume of Tether: ~$127 billion (More than many traditional exchanges)

• Rumble user base: 350 million (larger than US population)

• Bitfinex trading volume: $330 million

• In addition, access to El Salvador through partner countries

El Salvador positions itself not only as a home for these companies, but as a regulatory bridge between Latin America’s emerging cryptocurrency economy and the global financial system.

For El Salvador, this political complexity adds another layer to an already ambitious play. Not only are they building a cryptocurrency position, they are doing so while:

• Navigating Trump’s America First Cryptocurrency Agenda

• Managing the demands of the International Monetary Fund

• Attract companies allied with Trump

• Maintaining diplomatic balance

If Trump succeeds in making America crypto-friendly, will that undermine El Salvador’s ambitions as a hub? Or does he confirm them?

Maybe this is the wrong question. Perhaps what we are seeing is not a competition between countries, but the emergence of a new kind of financial system – one in which El Salvador’s advantage in first place is more important than traditional size or power.

After all, in the world of cryptocurrencies, being the first is often more important than being the biggest.

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