Bitcoin

USDT Abandonment Strike in El Salvador

When El Salvador passed a law making bitcoin legal in the country, it did not set itself on a path to add a payment option to the existing infrastructure. It provided regulatory clarity that allowed the existing Bitcoin-forward platform to better serve its citizens.

Thanks to the regulation, Strike, a startup focused on the Lightning Network that helps El Salvador build a national Bitcoin-based payments system, will not need to replace the US dollar with Tether’s USDT stablecoin.

Why Strike had to use USDT in El Salvador

Strike CEO Jack Mallers participated in a talk ring From the “What Bitcoin Did” podcast, prior to his first trip to El Salvador to work with Bitcoin Beach community, it has reached out to some financial institutions in the country and discovered that it is illegal for a financial service to hold dollars on behalf of the user. In addition, there was no regulatory clarity regarding Bitcoin in El Salvador at the time.



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