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Milena Mayorga, El Salvador’s ambassador to the United States, has said the country plans to open a “Bitcoin embassy” in Texas. The comments came in a Twitter post on Wednesday where Mayorga disclosed his meeting with Texas Under Secretary of State Joe Esparza to discuss the idea.
The state of Texas, our new ally.
In my meeting with the Assistant Secretary of the Government of Texas, Joe Esparza @TXsecofstatewe discussed the opening of the second Embassy #Bitcoin and to expand commercial and economic exchange projects. 🇺🇸🤝🇸🇻 pic.twitter.com/NcmOjeadl6
— Milena Mayorga (@MilenaMayorga) February 14, 2023
Although he did not provide further details during his time speaking on a news site, Esparza confirmed his meeting with El Salvador’s ambassador to the US, saying they met “to discuss cultural and commercial exchange opportunities.” decipher reports.
El Salvador, a champion for cryptocurrency adoption
In addition to educating the public about the flagship cryptocurrency, Bitcoin (BTC), it is unclear exactly what the main role of the embassy will be, but the move reinforces El Salvador’s commitment to spreading cryptocurrency adoption.
In its campaign for wide adoption of Bitcoin, this is not the first establishment that El Salvador would open in a foreign country. In 2022, the country established a “Bitcoin office” in Lugano, Switzerland, as part of a mission to spread cryptocurrency adoption in Europe. Notably, the country also signed a Memorandum of Understanding (MoU) on economic cooperation with the Swiss city.
At the time, the countries announced that, for their part, the Swiss project with El Salvador is inclined to support “initiatives to promote the adoption of bitcoin and other cryptocurrencies in their respective regions” and “promote the exchange of students and talents between El Savior”. and Lugano.”
The country has also doubled down on its commitment to cryptocurrencies despite last year’s bear market, working on a Digital Asset Issuance Law in 2022. The law would reportedly make it easier to trade any crypto asset.
TO document Available on the official government website under the file of the National Assembly of El Salvador, the law would regulate the transfer operations of any digital asset with the aim of promoting “the efficient development of the digital asset market and protecting the interests of the acquirers”.
The novelty or trinket of the law is its unique ability to distinguish cryptocurrency assets from any other financial assets and products. In doing so, the law created a regulatory framework tailored to Salvadorans, without a doubt. In particular, “for a digital asset to fall into this categorization, it must use a distributed ledger or similar technology.” It’s also worth mentioning that the blockchain remains possibly the most popular distributed ledger technology yet.
Within its framework, the law excludes transactions with central bank digital currencies (CBDCs) because they are fiat currencies regulated based on the financial guidelines of each country. The law also leaves out assets that are not eligible for trading or exchange, those with limited transactions such as securities and sovereign assets regulated by international law.
Ana Ojeda, crypto lawyer, highlighted some of the most interesting statutes of that law in a Twitter threadciting the creation of a registry of digital providers, legalization of cryptos, inclusion of a legal definition of stablecoins and tokens, regulation of public offerings of digital assets, and tax exemption in some cases.
Like any other law, this one too was criticized, with the likes of Salvadoran hacktivists. Mario Gómez, known for his strong stance against President Bukele’s Bitcoin law, saying :
The new law was created as a way to benefit troubled foreign companies, seeking to increase El Salvador’s attractiveness as a haven for the crypto industry.
#The Savior Let’s talk about the law of “Digital Assets Issuance Law” or the law of the Salvadoran Crypto-paradise.https://t.co/MV9BJz2ASI
— 🔥 🌷 ☠️ Mario Gomez :: γ ☠️ 🌷 🔥 (@mxgxw_gamma) November 22, 2022
El Salvador becomes the first country to adopt Bitcoin as legal tender
El Salvador was the first country to adopt Bitcoin as legal tender in 2021, with its president Nayib Bukele announcing the idea in June during the Bitcoin 2021 conference in Miami, USA. Since then, El Salvador’s law has been subject to of numerous criticisms with the likes of the World Bank and the International Monetary Fund (IMF) say it was a premature move as many Salvadorans do not use cryptocurrencies for everyday use.
According to Bukele’s Twitter announcements, El Salvador has also bought different cryptocurrencies, with Bitcoin being an obvious choice, even though the administration is not very forthcoming about the exact details.
Yet even in the face of criticism from activists and human rights groups over his crackdown on notorious street gangs, President Nayib Bukele is a hugely popular figure among his compatriots.
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