Bitfinex, a peer-to-peer crypto exchange along with the issuer of stablecoin USDT, Tether has established a crypto relief fund to help affected people and their families in the gang-related violence in El Salvador. However, the controversial clampdown on gang crimes by the government continues to increase in the country.
Paolo Ardoino, the Chief Technical Officer at Bitfinex, in an announcement said: “both companies” will “stand with the disadvantaged” and have made the donation of Bitcoin(BTC) worth 1 million for kickstarting the fundraising initiative, that will be accepting both BTC and USDT on various blockchain protocols.
Further, the CTO said that the donated funds will be under strict surveillance for ensuring fair distribution. With the help of the local government and community groups, the funds will be deployed.
El Salvador’s President Nayib Bukele expressed his gratitude to Bitfinex and Tether through a tweet.
In order to enact crypto and securities regulatory laws, Bitfinex and the Salvadoran government are working together for some time now, while iFinex, Tether’s parent company along with El Salvador officials. This could be considered in preparation for a (delayed) bitcoin bond issuance.
The delay is partly because of the emergence of “pandilla”-related gang violence. On being asked about the threats on innocent civilian targets due to the President’s crackdown on the Pandillas, the President says the imprisoned gang members will starve to death.
Many influential figures in the crypto community have cheered for Bukele on his “heroic fight” toward financial freedom, says Ardoino. He comments that the time has arrived to act.
Anthony Blinken, the Secretary of State among other United States politicians has criticized the response of Bukele, but the president continues to be defiant.
In the tweet, the President revealed that more than 10,000 gang members were arrested in the last 17 days.
Bukele also revealed that there has been a decrease in the homicide level since the start of the crackdown. He claims that according to the official statistics, zero killings have been reported in five days so far this month.
Meanwhile, El Faro, a media outlet, declared that the Bukele’s government signed a deal with the Mara Salvatrucha gang, in 2020.
In response to the claims, Bukele shared pictures of inmates handcuffed in cramped conditions, stripped down to their underwear, clearing the assumption that any such deal has ever happened. Human rights activists have shown their disapproval of such harsh behavior.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.