The Mortgage Bank of The Savior created an alliance with the companies API3, Qredo, Sovryn and TESOBE to drive the adoption of Bitcoin in the country, according public the latter on its official blog on October 11, 2021.
According to them, the purpose of the alliance is to generate a payment method that promotes financial inclusion and the provision of secure digital payments; at the same time that it seeks to increase the financial inclusion of the bank’s clients through cryptocurrencies.
With this alliance, the financial institution hopes to eliminate many of the uncertainties that stand between El Salvador and the advantages of adopting cryptocurrencies, to face the criticism that has arisen in the country in recent days after the entry into force. of the Bitcoin Law.
An important aspect to highlight is that these decentralized companies will be working with one of the four state banks in the country, which will allow El Salvador to be the pioneer in carrying out the conversion of Bitcoin into a legal tender, which will be a positive factor to prevent BTC from being used illicitly
“This alliance is a great opportunity for The savedr Create new financial products that support the needs of our Salvadoran citizens “, Celina Padilla, president of Banco Hipotecario said in the statement published by TESOBE.
There is already a website where the logos of the Mortgage Bank, the Superintendency of the Financial System (SSF), the Government of El Salvador and the Central Bank (BCR), in addition to the aforementioned technology firms that are part of the new pro alliance appear. -bitcoin.
Respectable firms in the Bitcoin alliance
The technology firms that are participating in this new alliance in El Salvador with the state bank are companies with a strong track record and foundation both in the fintech business and in the crypto ecosystem.
TESOBE, the company behind the Open Bank Project, helps banks execute innovation strategies and API effective by providing a platform, approved and supported by an active community of developers and partners.
For its part, Qredo’s Layer 2 blockchain protocol will allow users to transfer and settle tokens and cross-chain cryptocurrencies like BTC, ETC, ETH, etc.
Meanwhile, the API3 foundation is a decentralized autonomous organization that leads the network movement, to provide more security, efficiency and regulatory compliance, developed by Airnode’s own oracles, with decentralized APIs (dAPI) that serve as native data sources. of blockchain with quantifiable security.
Sovryn on the other hand is Bitcoin’s native financial operating system that allows people to use their BTC in decentralized applications. Sovryn provides an infrastructure that uses Layer 2 technologies for the next generation of DeFi.
It is worth remembering that the Bitcoin Law of El Salvador entered into force on September 7, and the nation-state officially adopted Bitcoin as legal tender. Simply put, this regulatory change allows Salvadorans to buy goods and pay taxes with Bitcoin, using the Lightning network for instant settlement and low fees. Meanwhile, financial institutions in the region were faced with the operational challenges of accepting Bitcoin as legal tender on a large scale.
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