Simon Dixon, a crypto investor and influencer, commented on Tether's decision to relocate its operations to El Salvador. He said that the move aligns with the country's dollarized and Bitcoin economy, predicting resistance from European Union regulators as using USDT offers "no direct benefits" for the region. Dixon made his statement in a January 13 post on X.
"Tether to relocate to El Salvador after securing license," said Dixon. "This move aligns with El Salvador's dollarized & Bitcoin economy. I anticipate resistance from EU regulators though, as using $USDT offers no direct benefits for the region."
According to a report by Cointelegraph, Tether is moving its operations from the British Virgin Islands to El Salvador after obtaining a digital asset service provider license. The company cited El Salvador’s favorable regulatory environment and growing Bitcoin adoption community as key factors in its decision. CEO Paolo Ardoino said that this relocation would "strengthen" the company’s focus on emerging markets. This move follows reports that Tether’s CEO and COO acquired real estate and became naturalized citizens in El Salvador in 2024.
Simon Dixon's post
| X
In 2021, El Salvador became the first country to adopt Bitcoin as legal tender after Congress approved President Nayib Bukele's proposal with 62 out of 84 votes. The law mandates businesses accept Bitcoin for goods and services while maintaining the U.S. dollar as legal tender. Bukele also proposed using geothermal energy for Bitcoin mining and offering citizenship to individuals investing in Bitcoin, according to Reuters.
According to Coingeek, Tether's future in Europe remains uncertain as the EU's Markets in Crypto-Assets (MiCA) regulations come into effect. These regulations follow $4 billion in redemptions and a decrease in Tether's market cap from $141 billion to $137 billion. MiCA requires significant stablecoins like USDT to hold 60% of reserves in EU banks, a requirement CEO Ardoino has expressed concerns about due to potential bank failures. Meanwhile, exchanges such as Coinbase and Binance have moved to limit or delist USDT within the European Economic Area.
Dixon has invested in over 100 crypto companies, including Kraken and Coinbase. He creates crypto content on platforms like X and YouTube and serves as CEO and co-founder of BnkToTheFuture, a regulated crypto securities business, according to LinkedIn.