Tether CEO Paolo Ardoino cited El Salvador’s progressive crypto policies, favorable regulatory environment, and growing Bitcoin-savvy population as key reasons for the move. The relocation represents a strategic alignment with a nation that has embraced crypto innovation since adopting Bitcoin as legal tender in 2021.

“This decision is a natural progression for Tether,” Ardoino said. “By rooting ourselves in El Salvador, we are reinforcing our commitment to empowering people worldwide through decentralized technologies.”

Strengthening Local Ties

The decision to move follows a series of developments highlighting Tether’s close ties to El Salvador. In 2024, Ardoino and Tether COO Claudia Lagorio reportedly became naturalized citizens of the country and invested in local real estate. Additionally, Tether has pledged support for renewable energy initiatives, including geothermal projects proposed by El Salvador’s government.

President Nayib Bukele, who has been a vocal advocate for Bitcoin adoption, has reportedly engaged with Ardoino on several occasions. Bukele’s administration has made significant efforts to position El Salvador as a global hub for Bitcoin and blockchain innovation, despite mixed results in achieving economic benefits from the 2021 BTC adoption.

El Salvador’s Crypto Evolution

Under Bukele’s leadership, El Salvador has drawn international attention for its bold crypto policies. The government holds over 6,000 BTC—worth more than $550 million—and continues to promote the use of Bitcoin despite criticism and challenges. While surveys indicate that most Salvadorans do not regularly transact with Bitcoin, the administration maintains that the policy has been a net positive for the country.

Balancing Opportunity and Criticism

Despite his popularity among crypto enthusiasts, Bukele has faced criticism for alleged human rights abuses and actions against political dissenters. His administration has also been scrutinized for not fully realizing the economic benefits of Bitcoin adoption. Nonetheless, companies like Tether view El Salvador as a prime location to further blockchain innovation and expand operations in emerging markets.

A Strategic Move

Tether’s relocation underscores a growing trend of crypto companies gravitating toward jurisdictions with favorable regulations and a supportive environment for blockchain technology. This move may pave the way for further industry investments and innovations in El Salvador, solidifying its position as a global leader in the crypto space.