Leading Bank in El Salvador, Bancoagricola Partners with Flexa to Launch Bitcoin Servic

After El Salvador implemented the Bitcoin law on Tuesday, the move was marked with many challenges. On the same day that the law was implemented, Bitcoin’s price crashed from $52K to $46K.

Despite these challenges, financial players in the country are working to ensure that the move becomes a success. Bancoagricola, one of the largest financial institutions in the country, has become the first bank to launch a Bitcoin savvy technological solution. The bank is also making the necessary adjustments to offer Bitcoin services, with the recent being its partnership with Flexa.

Bancoagricola Partners with Flexa

According to a recent statement, Flexa, a digital payments startup firm, will be working with Bancoagricola to enable citizens of El Salvador to access banking services regardless of whether they are using Bitcoin or the US dollar.

Flexa also stated that Bancoagricola was launching Bitcoin services to ensure compliance with the newly implemented Bitcoin law. Some of the services that the bank will start offering to include Bitcoin for loans, credit cards, and merchant goods and services. This makes it the first major bank in the country to offer such services.

The Bitcoin law in El Salvador has been making headlines since June when it was proposed by the country’s president, Nayib Bukele. With overwhelming support from Congress, the bill was passed. The Bitcoin law states that the primary cryptocurrency will be used as legal tender alongside the US dollar. Hence, it is mandatory for financial institutions to accept Bitcoin.

El Salvador had taken several measures to ensure that the government could still have some form of control over the cryptocurrency despite being decentralized. To this effect, the country developed the Chivo wallet, where it deposited $30 worth of Bitcoin to Salvadorians who download the application.

According to the government, those who use the Chivo wallet will be charged zero fees. The wallet is custodial and does not have any direct link to any bank.

A First for the Country

The recent move by Bancoagricola has gone a notch higher to boost the implementation of the Bitcoin law. By partnering with Flexa, the bank will allow its clients to use Bitcoin as a means of payment or any other financial services without downloading the Chivo wallet. This will promote Bitcoin-to-fiat compatibility and make it easy for Salvadorans to shift to the new crypto economy.

Bancoagricola’s parent company, Bancolombia, is also working with Gemini, one of the most compliant US crypto exchanges, to extend crypto services to clients. The move happens as more Central American countries become crypto-savvy. The two banks will be spearheading a global innovation in the banking sector.

According to Carlos Mauricio Novoa, the COO of Bancoagricola, the bank was excited to begin this new phase of crypto adoption in the country. The bank was also hoping to continue expanding its services in the sector

“We are excited to be the first financial institution in El Salvador to enable bitcoin access for our customers across our entire suite of financial products and to enhance financial inclusion. Flexa has been instrumental in helping us prioritize our customers’ experiences using bitcoin as legal tender in El Salvador; we look forward to continuing to innovate alongside them for a long time to come,” he said.

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