Government contacts foreign firms for its bitcoin project

In recent weeks, international media specialized in cryptocurrencies have revealed names of companies that have signed agreements or have acknowledged working with the Salvadoran Government in the implementation of bitcoin as legal tender in the country.

Internally, the Bukele administration has not released many details about the project. President Bukele announced last week the purchase of 550 cryptocurrencies, through his Twitter account.

He also negotiated in parliament the modification of the budget to access more than $ 200 million to promote the use of bitcoin in the country.

At the end of August, the Koibanx company signed a cooperation agreement to develop the blockchain infrastructure of the Government of El Salvador (GOES) on Algorand technology, according to a statement released by the firm on its website. This firm was born in 2015 and operates in Mexico, Argentina, Colombia and Uruguay.

The agreement signed with the GOES will allow official records to be hosted on the blockchain, according to an article published on the specialized platform CoinDesk. According to CoinDesk, Koibanx is a Latin American blockchain financial infrastructure and asset tokenization company.

Koibanx CEO and co-founder Leo Elduayen told CoinDesk that “the ability to store official documents digitally on top of the Algorand blockchain will arrive before the end of this year.” Koibanx has already started working with El Salvador’s National Registry Center (CNR) on this project, Elduayen revealed to the specialized media.

The article highlights that “each person or legal entity will have its own address containing tokens or ‘hashes’ with documentation. Furthermore, all transactions between private companies or individuals with different government entities will be recorded in the Algorand protocol.” Elduayen clarified that “money will not be exchanged on the platform, but values ​​or rights will be exchanged, such as property titles or bank guarantees,” the publication adds.

Other company

Last week it became known that the US company Bitso is one of the providers for the state wallet Chivo, according to a note published by financial media Bloomberg. Bitso details that it provides the government with custody and exchange services to Chivo, in addition to providing “back-end” technology (the code that makes the wallet work or not on the servers).

Bitso details on its website that they were born 7 years ago and have more than 2 million clients in Latin America. Likewise, they are “licensed by the Gibraltar Financial Services Commission (GFSC), which provides transparency and security to all operations carried out on our platform.”

Third

Another of the companies that the Government would have sought, according to Forbes magazine, is BitGo, whose headquarters are in Palo Alto, California.

“Forbes learned that El Salvador may have taken advantage of the BitGo cryptocurrency unicorn to provide Chivo’s wallet infrastructure and security platform,” the publication said.

“Digital assets look so different than what we’ve seen with other types of money, so people wonder how they fit together, but this is an opportunity,” BitGo CEO Mike Belshe said in a statement quoted by Forbes. .

The three firms contacted

These technology firms have announced that they have signed agreements or that they provide services to the government.

1- Algorand
Koibanx signed an agreement to develop the GOES blockchain infrastructure on Algorand technology. Its CEO said that they could support a national stable currency for the country, but that is not in the plans at the moment.

2- Name
It is a provider for the Chivo state wallet. Bitso details that it provides the Government with custody and exchange services to Chivo, in addition to providing “back-end” technology (the code that makes the wallet work on the servers).

3- BITGO
According to Forbes, it is another of the firms that the government has sought to implement the bitcoin project. According to the magazine, El Salvador may have taken advantage of the cryptocurrency unicorn to provide the infrastructure for its Chivo Wallet.

From Argentina

The newspaper Clarín published an article in which the firm Lemon Cash said that “we are providing a tool to one of the financial institutions of El Salvador to be able to accept payments in BTC and that simultaneously they do not run a risk due to the volatility of the digital asset.”

Tags:

  • Bukele’s bitcoin project
  • cryptocurrencies
  • Goat Wallet
  • blockchain
  • Koibanx
  • Algorand
  • Name
  • BitGo

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