• Is Bitso, a Mexican exchange, behind El Salvador’s Chivo Wallet?

  • The mystery surrounding the Chivo wallet remains unsolved. And Bitso enters the picture as part of a more credible report that has been confirmed through official channels. It appears that ULTCOIN365 was correct to question Forbes’ article about BitGo being behind the Chivo wallet. This Reuters report, on the other hand, includes specific details and quotes that confirm the news. As an example:

    “We are excited to collaborate with El Salvador on a project that will transform payment structures and increase financial inclusion in the country,” said Santiago Alvarado, vice-president of Bitso for Business.

    Even that could be considered evasive, as it does not specifically refer to the Chivo wallet. This chunky bit of information, on the other hand, leaves little room for interpretation.

    “Bitso said it will collaborate with Silvergate Bank, a federally regulated and California state-chartered bank in the United States, to facilitate transactions in US dollars.”

    They appear to be discussing business, based on their language.

    What Is The Deal With BitGo If Bitso Is Behind The Wallet?

    The language in the BitGo report, on the other hand, suggested otherwise. The quote from BitGo’s CEO was non-comital, and the whole thing sounded like a paid press release. ULTCOIN365 inquired:

    “However, the most concerning sentence is “Forbes has learned El Salvador appears to have tapped… ” They’re not making any promises here. This is how it “appears,” but nothing is certain.”

    Could both companies, however, be involved? According to Reuters, Bitso will be Chivo’s “core service provider.” According to Forbes, BitGo will “provide Chivo’s wallet infrastructure and security platform.” Are these two statements contradictory? Or are both of these behemoth corporations behind the contentious Chivo wallet?

    Bitso’s name was found in the leak of the Chivo wallet’s architecture, which our sister site Bitcoinist reported on. BitGo’s name, on the other hand, was not. And Athena was at the heart of the whole thing. Nonetheless, it’s an amusing detail.

    One thing is certain: Strike appears to be completely out of the picture. Strike’s CEO, Jack Mallers, stated unequivocally in a recent Twitter thread, “Strike has no business relationship with Chivo wallet or any of their ATMs.”

    Mallers appears to be unconcerned about the situation. “There is one singular, open standard for the world with the Bitcoin network,” he says later in the thread.

    The Key Is Remittances

    Bitcoinist quoted Dante Mossi, executive president of the Central American Bank for Economic Integration, in the days leading up to the Bitcoin Law’s implementation. He stated that their focus was on remittances and that:

    “Guatemala, Honduras, and El Salvador stand to benefit the most if bitcoin adoption reduces the cost of sending remittances.” Every country in his organization’s sphere of influence.

    Instead of focusing on how much Salvadorans will receive, a recent report about how much Western Union will lose as a result of El Salvador’s Bitcoin move recently made headlines. Bitcoinist had this to say about it:

    “However, with bitcoin, the middleman, in this case Western Union and the like, is completely removed from the process. The funds are sent directly to the recipient, with no need for a third-party processing fee. It is estimated that when remittances are routed through bitcoin instead, these remittance companies will lose $400 million per year.”

    Bitso, it turns out, specializes in remittances. In 2020, the company processed “over $1.2 billion in remittances between the United States and Mexico.” Reuters quotes Santiago Alvarado once more in the article:

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

    So far, everything makes sense. The mystery of the Chivo wallet remains unsolved.

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