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Strike Phasing Out USDT In El Salvador due to a Banking Integration Plan

Strike Phasing Out USDT in El Salvador due to a Banking Integration Plan

Posted Tuesday, June 22, 2021 by
Sophia Cruz • 2 min read

In a podcast released last week, Jack Maller, the founder of Zap who also runs the Strike wallet used in El Salvador said that “Tether is no longer part of anything.” The Strike is here to end the use of Tether as an alternative to the US dollar. “Tether was part of what Strike did because we didn’t have a choice, but with the new law you don’t have to use it.”

Strike is an application that allows its users to interact with Bitcoin protocols and the Lightning network, using a bank account or a debit card. Mallers’ aim is to build a faster, cheaper remittance system in El Salvador. In the podcast interview, Mallers shared his thoughts about El Salvador’s banks and their roles with the new Bitcoin Law, and what Strike can provide.

“There will be about 1,000 ATMs of this type, which will be spread throughout El Salvador and in much of Central America, for the unbanked, and will allow them to deposit dollars in cash and have it in their Strike account,” said Mallers.

This will guarantee that there will be no need for the use of stablecoin Tether. Since some Salvadorans had already started using the stablecoin as a temporary coin, users who don’t want to hold USDT can convert it into BTC via Strike. The only problem is if users want to convert it into cash/dollars, which you can withdraw via ATMs, but they charge hefty fees.

There is still no timeline for the execution and completion of Strike “banking”. Mallers mentioned that he is not affiliated with, nor does he have any contract with the President of El Salvador. His aim is to be the face behind the development of El Salvador’s infrastructure and to enjoy the “great experience” on this journey.

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