iFinex, the parent company of the Bitfinex exchange, has announced a groundbreaking partnership with the Government of El Salvador. This strategic collaboration aims to establish a comprehensive legal framework for digital assets and securities within the country, marking a significant milestone in the regulation of such assets in El Salvador. The objective of this framework is to facilitate the issuance and trading of digital financial instruments, bringing clarity and stability to the rapidly growing market. Drawing on its extensive experience in operating exchanges, iFinex will play a crucial role in the development of laws, regulations, and guidelines related to cryptocurrencies. Additionally, the company will provide guidance to the El Salvador government on issuing and facilitating digital asset transactions.
One of the key aspects of this partnership is the introduction of the revolutionary “Volcano Bond” – the world’s first digital bond backed by Bitcoin. This innovative financial instrument aims to raise funds for the construction of energy infrastructure dedicated to Bitcoin mining, showcasing the transformative potential of digital assets.
Paolo Ardoino, the Chief Technology Officer of Bitfinex Securities, expressed his enthusiasm for the project, stating, “We are thrilled to be part of this venture alongside the government of El Salvador and Blockstream, as it opens up new opportunities for capital mobilization and the tokenization of shares.”
Echoing this sentiment, El Salvador’s President, Nayib Bukele, emphasized, “We take great pride in this collaboration and firmly believe that it will be a significant step towards positioning El Salvador as the new global financial hub.”
