Is Mexican Exchange Bitso Behind El Salvador’s Chivo Wallet?

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The thriller of the Chivo pockets persists. And Bitso comes into the image as a part of a extra credible report confirmed by way of official channels. It looks as if NewsBTC was proper to doubt Forbes’s article about BitGo being behind the Chivo pockets.  This Reuters report, alternatively, comes with particular info and quotes confirming the information. For instance:

“We are looking forward to working with El Salvador in an initiative that will transform payment structures and increase financial inclusion in the country,” mentioned Santiago Alvarado, vice-president of Bitso for Business.

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

Even that may very well be thought-about evasive, it doesn’t check with the Chivo pockets particularly. This chunky bit of knowledge, alternatively, leaves little to the creativeness.

“Bitso said it will work with Silvergate Bank, a U.S. federally-regulated and California state-chartered bank, to facilitate transactions in U.S. dollars.”

The language suggests they’re speaking enterprise.

If Bitso Is Behind The Wallet, What’s The Deal With BitGo?

On the opposite hand, within the BitGo report, the language prompt in any other case. The quote from BitGo’s CEO was non-comital and all of it appeared like a paid press launch. NewsBTC questioned:

“The most worrying sentence, however, is “Forbes has learned El Salvador appears to have tapped…” They’re not committing to something right here. It “appears” this fashion, however nothing is for certain.”

However, may each corporations be concerned? Reuters says Bitso might be “the core service provider for Chivo.” Forbes mentioned that BitGo would “provide Chivo’s wallet infrastructure and security platform.” Are each of those statements contradictory? Or are each of those big corporations behind the controversial Chivo pockets?

A humorous element is that Bitso’s title was current within the leak of the Chivo pockets’s structure that our sister website Bitcoinist reported on. BitGo’s title wasn’t. And Athena was on the heart of the entire operation. Still, it’s a humorous element.

One factor’s for positive, Strike appears to be fully out of the image. In a latest Twitter thread, Strike’s CEO Jack Mallers clearly mentioned “Strike has no business relationship with Chivo wallet or any of their ATMs.

Mallers appears to be completely high-quality with the scenario. “With the Bitcoin network, there is one singular, open standard for the world,” he says afterward within the thread. 

BTC value chart for 09/10/2021 on Bittrex | Source: BTC/USD on

Remittances Are The Key

In the times previous to the Bitcoin Law coming into impact, Bitcoinist quoted the chief president of the Central American Bank for Economic Integration, Dante Mossi. He mentioned their eyes had been on remittances and that:

“Guatemala, Honduras and El Salvador are the countries that would have the most to gain if the adoption of bitcoin lowered the cost of sending remittances.” All international locations in his group’s space of affect.

Instead of specializing in how a lot Salvadorans are going to get again, a latest report about how a lot Western Union goes to lose with El Salvador’s Bitcoin transfer lately made the information. About it, Bitcoinist mentioned:

“With bitcoin though, the middleman, in this case, Western Union and the likes, are completely removed from the process. The funds sent go directly to the recipient without the need for a 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 seems, remittances are Bitso ’s specialty. The firm processed “more than $1.2 billion in remittances between the United States and Mexico in 2020.” In the article, Reuters quotes Santiago Alvarado once more:

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

So, this all is sensible. Still, the thriller of the Chivo pockets continues.

Featured Image by Thomas Jarrand on Unsplash - Charts by TradingView


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