Crypto platform Bitso works with El Salvador on Chivo digital wallet

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A representation of the Bitcoin cryptocurrency can be seen in this illustration taken on August 6, 2021. REUTERS / Dado Ruvic / Illustration / File Photo / File Photo / File Photo / File Photo

Sept. 7 (Reuters) – Fintech Bitso, a cryptocurrency platform, said on Tuesday it would be the primary service provider for Chivo, the bitcoin digital wallet launched in El Salvador, becoming the first country in the world to adopt the bitcoin as legal tender.

Bitso said he would work with Silvergate Bank, a US federally chartered and California state chartered bank, to facilitate transactions in US dollars.

“We look forward to working with El Salvador in an initiative that will transform payment structures and increase financial inclusion in the country,” said Santiago Alvarado, vice president of Bitso for Business.

President Nayib Bukele, who lobbied for the adoption of cryptocurrency, argued that using bitcoin would help Salvadorians save $ 400 million a year in remittance commissions, while also giving access to financial services for those who do not have a bank account.

“As the region’s leading crypto exchange, we are excited to bring our experience in secure, low-friction remittances and financial services to Salvadorans,” said Alvarado.

Bitso said his services represented the processing of more than $ 1.2 billion in remittances between the United States and Mexico in 2020 and that he would now apply his expertise to El Salvador, where some 70% of people do not have adequate access to basic financial services.

Last year Salvadorians sent home nearly $ 6 billion from abroad, mostly from the United States. The sum is equivalent to some 23% of the country’s gross domestic product.

Bukele’s government has pledged $ 30 worth of bitcoin for each user. Earlier on Tuesday, Salvadorans trying to download the Chivo digital wallet discovered that it was not available on popular app stores.

Bukele said in a tweet that the government had temporarily disconnected it, in order to connect more servers to meet demand. He blamed the app download platforms for the delay.

Reporting by Anthony Esposito in Mexico, editing by Rosalba O’Brien

Our Standards: Thomson Reuters Trust Principles.

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