Binance and El Salvador are joining hands to boost the nation’s long-running bitcoin agenda. The digital currency exchange – the biggest and most popular in the world – is garnering two separate licenses to operate in the Central American nation, thus bringing its total world licenses to 18.
Binance Gains Ground in El Salvador
The documentation was provided by the Central Bank of El Salvador, which is now permitting Binance to serve as a bitcoin services provider (BSP) within the country’s borders. In addition, the Salvadoran National Commission of Digital Assets has given a non-provisional digital assets services providers license to the company. Daniel Acosta – the general manager for Columbia, Central America, and the Caribbean at Binance – stated in an interview:
These licenses allow Binance to expand the products and services offered including options tailored to the needs of our customers in El Salvador.
Binance has been stuck in a bit of a rut over the last several weeks. Not long ago, the company had a lawsuit filed against it by the Securities and Exchange Commission (SEC). The financial agency alleges that Binance has been breaking securities laws since it first came to fruition. It also says that the exchange has taken a page out of the FTX playbook and commingled customer funds with those of the enterprise.
The licenses it’s received will likely play a huge role in boosting the company’s reputation. It will now be open to a whole new string of customers in a new country and garner additional business, thus helping to legitimize it further.
Meanwhile, El Salvador has been pushing bitcoin for two full years. It was the first nation in the world to declare bitcoin legal tender, having done so initially in September of 2021. Thus, all bitcoin holders could walk into any business or store and purchase goods and services with bitcoin. Up to that point, the nation had long depended on the U.S. dollar, and bitcoin was given new life due to inflationary concerns.
The Country Loves BTC
But while this may have seemed easy at first, the nation’s transition to bitcoin was shaky and rough, at the very least. For example, many people were not pleased about the idea of having BTC “forced” upon them, and thus took to protesting in the streets of San Salvador, the nation’s capital city. Also, Chivo – the wallet system designed to hold the BTC that would be handed out to residents – experienced several technical problems.
El Salvador also received no aid from the World Bank, which said it would not help the Central American region with its BTC plans. The World Bank ultimately felt that bitcoin was too volatile and risky, and thus didn’t warrant serious consideration or support. The International Monetary Fund (IMF) also objected to El Salvador’s plans.
