Strike’s Bold Move: From Chicago to El Salvador
Strike, the Bitcoin payment provider formerly based in Chicago, has announced an ambitious expansion, spreading its services to an impressive 65 countries. The move coincides with the company’s decision to relocate its global headquarters to El Salvador. Previously, the mobile app was only available in the United States, El Salvador, and Argentina.
Unveiling the Motives Behind the Move
Strike’s CEO, Jack Mallers, shed light on the reasons behind this bold strategic move. According to Mallers, the aim of the expansion is to counterbalance the “clouded world of crypto exchanges and hidden, unregistered licensing regimes and 1,000 different coins.” Furthermore, he indicated that the shift in headquarters is a response to rising anti-crypto sentiments in regulatory circles within the U.S.
Bitcoin’s Legal Tender Status and Strike’s Strategy
Interestingly, El Salvador recently introduced crypto-friendly regulations and has established Bitcoin as a legal tender, a fact that clearly did not escape Mallers’ strategic considerations. While regulatory constraints have hampered Strike’s operations in places like New York, El Salvador’s welcoming stance towards crypto technology played a pivotal role in attracting the Bitcoin payment provider.
Mallers highlighted the success of El Salvador in implementing Bitcoin as a legal tender, stating that merchant adoption “wasn’t what was defining success.” Instead, he cited factors such as increased tourism as a marker of success for the Central American country’s Bitcoin adoption.
Strike’s Future Plans: Bitcoin and Beyond
While Strike’s service in its new markets will initially allow users to only receive Bitcoin, Mallers revealed plans to introduce additional features, including a debit card, by the end of the year. Moreover, for customers outside the US, Strike will facilitate U.S. dollar payments via the stablecoin, Tether.
Comparing with the Giants
“Two years ago, people would have made fun of me [for our] headquarters in El Salvador to launch a product for three billion people, but now Coinbase is fighting with Gary Gensler,” Mallers said. “Who’s laughing now?”
Strike, along with crypto exchange Bitfinex, are among the first companies to obtain operational licenses in El Salvador. This marks a significant milestone for the country and the companies involved, further solidifying the importance of crypto-friendly regulations in the current global financial landscape.
