Home » News » Is Mexican Exchange Bitso At the rear of El Salvador’s Chivo Wallet?

Is Mexican Exchange Bitso At the rear of El Salvador’s Chivo Wallet?

  • 5 min read
  • Bitcoin
Spread the love

The mystery of the Chivo pocket persists. And Bitso makes the picture as part of a more credible report confirmed through official channels. It seems like NewsBTC was right to doubt Forbes’s article about BitGo being behind the Chivo pocket. This Reuters report, however, comes with specific information and quotes confirming the news. Such as:

“ We have been looking 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.

Related Reading through | Bitcoin Price Bloodbath: Is El Salvador The “Sell The News” Occasion?

Even that could be considered evasive, it doesn’t refer to the Chivo wallet specifically. This chunky little bit of information, on the other hand, leaves little to the imagination.

“Bitso said it will use Silvergate Bank, a Oughout. S. federally-regulated and Ca state-chartered bank, to facilitate transactions in U. H. dollars. ”

The language suggests they’re talking business.

El Salvador made history by becoming the first country to make Bitcoin legal tender, and today, we’re very pleased to announce that Bitso is committed to building plus developing El Salvador’s eyesight of Bitcoin by being the core crypto-service provider for Chivo. Let’s #MakeCryptoUseful https://t.co/2rrTNDdXab

— Bitso (@Bitso) September 7, 2021

If Bitso Is Behind The particular Wallet, What’s The Deal Along with BitGo?

On the other hand, within the BitGo report, the language recommended otherwise. The quote from BitGo’s CEO was non-comital and it all sounded just like a paid press release. NewsBTC questioned:

“The most worrying sentence, however , is usually “Forbes has learned El Salvador appears to have tapped…” They’re not committing to anything here. It “appears” this way, but nothing is certain. ”

However , could each companies be involved? Reuters states Bitso will be “the core service provider for Chivo. ” Forbes said that BitGo might “provide Chivo’s wallet facilities and security platform. ” Are both of these statements contrary? Or are both of these large companies behind the controversial Chivo wallet?

A funny detail is that Bitso’s name was present in the leak of the Chivo wallet’s architecture that our cousin site Bitcoinist reported on. BitGo’s name wasn’t. Plus Athena was at the center of the whole operation. Still, it’s a funny detail.

One thing’s for sure, Strike seems to be totally out of the picture. In a current Twitter thread, Strike’s CEO Jack Mallers clearly said “Strike has no business relationship along with Chivo wallet or any of the ATMs. ”

All that had been needed was interoperability using the #Bitcoin network.

Strike has no business relationship along with @chivowallet or any of their ATMs.

We just both integrated and operate on top of the same, singular, payment standard that is #Bitcoin and the Lightning Network.

— Jack Mallers (@jackmallers) September 7, 2021

Mallers seems to be perfectly fine with the scenario. “With the Bitcoin system, there is one singular, open standard for the world, ” he says later on in the thread.

BTC price chart for 09/10/2021 on Bittrex | Source: BTC/USD on TradingView. possuindo
Remittances Are The Key

In the days prior to the Bitcoin Law coming into effect, Bitcoinist quoted the executive chief executive of the Central American Financial institution for Economic Integration, Dante Mossi. He said their eyes were on remittances and that:

“Guatemala, Honduras and El Salvador are the countries that would possess the most to gain if the ownership of bitcoin lowered the price of sending remittances. ” Every countries in his organization’s area of influence.

Rather than focusing on how much Salvadorans are likely to get back, a recent report about how exactly much Western Union is going to lose with El Salvador’s Bitcoin move recently produced the news. About it, Bitcoinist stated:

“With bitcoin though, the middleman, in cases like this, Western Union and the likes, are completely removed from the process. The particular funds sent go straight to the recipient without the need for the processing fee to a third party. It is estimated that these remittance companies are set to lose about $400 million a year when remittances are routed through bitcoin instead. ”

Related Reading | Bitso Raises Over US$1. 85m to Boost Mexican Bitcoin Remittance

As it ends up, remittances are Bitso ’s specialty. The company processed “more than $1. 2 billion dollars in remittances between the United States and Mexico in 2020. ” In the article, Reuters quotes Santiago Alvarado again:

“As the leading crypto exchange in the region, we are thrilled to bring our encounter in remittances and in safe and low-friction financial services to Salvadorans. ”

So , this all is practical. Still, the mystery from the Chivo wallet continues.

Featured Image by Jones Jarrand on Unsplash : Charts by TradingView