El Salvador’s largest bank to support Bitcoin for loans and more

The introduction of Bitcoin for mainstream use in El Salvador has been faced with serious challenges. Yet, financial institutions in the country are putting the best effort into complying with the new legislation.

Bancoagrícola, El Salvador’s largest financial institution, is one of the first lenders to incorporate Bitcoin-compatible technology solutions. 

As part of a partnership with digital payments firm Flexa, the bank is modifying its infrastructure to provide Bitcoin services. 

Based on details of a press statement released by Flexa, this new alliance by both parties will allow Salvadorans to access basic banking services, with the option of using bitcoin or dollars.

The press statement also noted that Bancoagrícola’s platform now supports bitcoin for loans, credit cards, and merchant goods and services, all in a bid to comply with the country’s new Bitcoin Law as soon as possible.

The Bitcoin Law, which was proposed by President Bukele in June and approved a few hours later by El Salvador’s pro-Bukele Congress, states that “bitcoin will be accredited as a legal tender, being of mandatory acceptance by any economic agent with the minimal means necessary to use it.”

Since bitcoin is independent of the banking structure, the government launched a digital wallet called Chivo and airdropped US$30 in BTC to all Salvadorans who download it.