July 17, 2024
ambassador Milena Mayorga

Texas Deputy Secretary of State Joe Esparza and El Salvador’s U.S. ambassador Milena Mayorga. Source: Twitter

The Salvadoran ambassador to the United States, Milena Mayorga, announced on February 14, 2023, that El Salvador is contemplating the possibility of establishing a second Bitcoin embassy in Texas. The first Bitcoin embassy is located in Switzerland.

Mayorga referred to Texas as “our new ally” and emphasized the goal of expanding “commercial and economic exchange projects” between the two entities.

Bitcoin Embassy in Texas

The Salvadoran ambassador to the U.S., Milena Mayorga, has been working to strengthen the relationship between El Salvador and Texas. This week, Mayorga discussed her recent meeting with Texas Secretary of State Joe Esparza, where they explored the possibility of opening a second Bitcoin embassy in the state. Mayorga also noted that discussions had already taken place with authorities from Lugano, Switzerland about a similar Bitcoin embassy concept.

Mayorga tweeted, “The state of Texas, our new ally. In my meeting with the deputy secretary of the Government of Texas, Joe Esparza… We discussed the opening of the second [Bitcoin] embassy, and the expansion of commercial and economic exchange projects.”

Digital Assets Issuance Law

El Salvador Advances Integration of Blockchain Technology with the approval of the Digital Assets Issuance Law in January 2023 and a recent mission statement on El Salvador’s economy by the International Monetary Fund (IMF), has paved the way for this development. The IMF noted that El Salvador had managed to avoid cryptocurrency-related risks due to the slow and tepid adoption of Bitcoin in the country.

El Salvador has taken a significant step towards the integration of blockchain technology in its financial operations. The Legislative Assembly has recently passed the Digital Assets Issuance Law, which lays down the rules for the state to conduct cryptocurrency-related public offers.

The law, which was passed with a majority due to the support of President Nayib Bukele’s party, aims to “establish the legal framework that grants legal certainty to transfer operations to any title of digital assets that are used in the issuance of public offerings carried out in El Salvador.”

Moreover, the legislation creates the bitcoin funds managing agency, an autonomous institution that will manage the funds obtained by the state through the issuance of cryptocurrency-based bonds. The agency will have a direct relationship with the Treasury of El Salvador.

The new law is another step taken by El Salvador to embrace the use of cryptocurrencies and promote the country’s economic growth. With the establishment of clear legal regulations for digital assets, El Salvador is set to become a leader in the global cryptocurrency market.

A Positive View

The Salvadoran ambassador’s proposal also follows comments by Salvadoran President Nayib Bukele regarding disinformation in the media. El Salvador’s finance minister, Alejandro Zelaya, took to Twitter to refute claims made by some national and international media, tweeting: “El Salvador has met its debt obligations. We announce that on this day we have completed the payment of the 2023 Bond for $800 million, plus interest.”

Mayorga noted in her own Twitter thread that Texas Secretary of State Joe Esparza had expressed a positive view of the relationship between El Salvador and Texas in terms of commercial and economic exchange, with the two entities having exchanged $1,244,636,983 in 2022.

Final Words

The possibility of opening a second Bitcoin embassy in Texas would further promote economic exchange between El Salvador and Texas. Mayorga’s efforts to foster this growing relationship highlight the importance of diplomatic efforts in the advancement of economic and commercial exchange.