The Mexico-based cryptocurrency exchange will work with US bank Silvergate Bank and Athena Bitcoin
An announcement the crypto platform shared on 7 September states that the Mexico-based exchange will provide the core services that will aid El Salvador’s use of Chivo, the country’s official Bitcoin wallet.
“El Salvador made history by becoming the first country to make Bitcoin legal tender, and today, we’re proud to announce that Bitso is committed to building and developing El Salvador’s vision of Bitcoin by being the core crypto-service provider for Chivo,” the exchange said in the statement.
Bitso looks forward to helping the Central American country in its historic move to “transform payment structures and increase financial inclusion”, the exchange’s VP for Business, Santiago Alvarado, said in a statement quoted by Reuters.
Salvadorans are expected to sign up for the Chivo wallet to receive $30 worth of free Bitcoin, with users able to use BTC or US dollars. Users can access their transactions directly from the Bitcoin wallet or withdraw cash at any of the 200 Bitcoin ATMs currently available in the country.
To facilitate the use of the Chivo wallet, Bitso will collaborate with US-based federally-licensed bank Silvergate Bank on handling US dollar transactions. Meanwhile, Bitcoin ATM provider Athena Bitcoin will assist in handling ATM transactions.
A significant portion of the remittances across the US-Mexico corridor go through Bitso, with an estimated $1.2 billion processed in 2020. The partnership with Nayib Bukele’s government is thus targeted at helping an increasing number of Salvadorans process remittances from the US and Latin America.