The use of Bitcoin (quotation BTC) in El Salvador did not have the best start. However, financial institutions are already doing their best to comply with the law.
Bancoagrícola, the country's largest financial institution, is among the first banks to include Bitcoin-compatible technology solutions and is already adapting its infrastructure to offer Bitcoin services thanks to a partnership with digital payments startup Flexa.
Bancoargícola and Flexa collaborate to bring Bitcoin to banks
According to an official press release shared by Flexa, the integration of both sides will allow Salvadorans to use basic banking services regardless of whether they choose Bitcoin or dollars.
The startup said Bancoagrícola has begun supporting Bitcoin for loans, credit cards, and commercial goods and services in an effort to comply with the Bitcoin law as soon as possible.
The Bitcoin Law, introduced by President Bukele in June and approved a few hours later by the country's pro-Bukele congress, provides that bitcoin will be recognized as legal tender, being mandatory acceptance by any economic agent with the minimum means necessary. to use it.
Since Bitcoin operates outside the banking structure, the government created the Chivo wallet and distributed $ 30 in BTC to all Salvadorans who download it. The Chivo wallet is a custodian, does not depend directly on any bank and allows for an immediate and presumably zero-fee exchange between Bitcoin and dollars.
But Bancoagrícola would go a step further from the point of view of integrated financial services. The partnership will also serve to offer Bitcoin compatibility at Bancoagrícola outlets without the need to use the Chivo Wallet.
Banks in El Salvador aren't the only ones innovating
Bancoagrícola is a branch of Bancolombia, the leading bank in Colombia. In that country, Bancolombia is working on an integration with the US-regulated cryptocurrency exchange Gemini to offer similar services thanks to the regulatory sandbox currently in place since 2019.
Integration with Flexa would be a unique innovation in the world. Carlos Mauricio Novoa, COO of Bancoagrícola, said he was enthusiastic about the future prospects and hopes to continue improving his services in this new economic phase that is starting in the country.
“We are thrilled to be the first financial institution in El Salvador to enable bitcoin access for our clients across our entire suite of financial products and to improve financial inclusion. Flexa has been instrumental in helping us prioritize our customers' experiences by using bitcoin as legal tender in El Salvador; we look forward to continuing to innovate with them for a long time to come ”.
Thanks to this solution, Salvadorans would have full Bitcoin to Fiat compatibility even if they use a third-party wallet alongside the government-sponsored Chivo wallet.
