Is Mexican exchange Bitso behind El Salvador’s Chivo wallet?


The mystery of the Chivo wallet persists. And Bitso comes into the picture as part of a more credible report confirmed through official channels. It seems NewsBTC was right to doubt Forbes’ article on BitGo being behind the Chivo wallet. This Reuters report, on the other hand, is accompanied by specific information and quotes confirming the news. For example:

“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.

Related reading | Bloodbath at the price of Bitcoin: is El Salvador a “Selling News” event?

Even this could be seen as elusive, it does not specifically refer to the Chivo wallet. This big chunk of information, on the other hand, leaves little to the imagination.

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

The language suggests that they are talking about business.

If Bitso is behind the wallet, what’s the deal with BitGo?

In contrast, in the BitGo report, the language suggested otherwise. The BitGo CEO quote wasn’t comital and it all sounded like a paid press release. NewsBTC questioned:

“The most disturbing sentence, however, is ‘Forbes has learned that El Salvador seems to have typed…’ They are not committing to anything here. It “appears” that way, but nothing is certain. “

However, could both companies be involved? Reuters says Bitso will “the main service provider for Chivo. “Forbes said BitGo will be”providing Chivo’s portfolio infrastructure and security platform.“Are these two statements contradictory? Or are these two giant companies behind the controversial Chivo portfolio?

A funny detail is that Bitso’s name was present in the Chivo wallet architecture leak that our sister site Bitcoinist reported. BitGo’s name was not. And Athena was at the center of the whole operation. It’s still a funny detail.

One thing is for sure, Strike seems completely irrelevant. In a recent Twitter thread, Strike CEO Jack Mallers made it clear, “Strike has no business relationship with the Chivo wallet or any of their ATMs.

Mallers seems to be perfectly fine with the situation. “With the Bitcoin network, there is a unique and open standard for the worldHe said later in the thread.

BTC price chart for 09/10/2021 on Bittrex | Source: BTC/USD on TradingView.com

Remittances are the key

In the days before the Bitcoin law went into effect, Bitcoinist quoted the executive chairman of the Central American Bank for Economic Integration, Dante Mossi. He said that their eyes were on remittances and that:

“Guatemala, Honduras and El Salvador are the countries that stand to gain the most if the adoption of bitcoin reduces the cost of remittances. »All countries in his organization’s area of ​​influence.

Instead of focusing on how much Salvadorans will recover, a recent report on how much Western Union will lose with El Salvador The Bitcoin movement has been in the news recently. On this, Bitcoinist said:

“With Bitcoin however, the middleman, in this case Western Union and the like, are completely excluded from the process. The funds sent go directly to the recipient without the need to pay a third party processing fee. that these remittance companies are expected to lose around $ 400 million per year when remittances are routed through bitcoin instead. ”

Related reading | Bitso raises more than $ 1.85 million to boost Mexican bitcoin shipments

It turns out that remittances are Bitso’s specialty. The company processed “over $ 1.2 billion in remittances between the United States and Mexico in 2020.In the article, Reuters again quotes Santiago Alvarado:

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

So this all makes sense. Yet the mystery of the Chivo wallet persists.

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