El Salvador to Launch Government Blockchain Infrastructure on Algorand This Year

The country has signed an agreement with Latin American asset tokenization company Koibanx to allow official records to be hosted on the blockchain.

AccessTimeIconAug 31, 2021 at 7:26 p.m. UTC
Updated May 11, 2023 at 4:59 p.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

El Salvador’s government has signed an agreement with Koibanx, a Latin American asset tokenization and blockchain financial infrastructure company, to develop the country’s blockchain infrastructure on top of the Algorand blockchain.

The ability to store official documents digitally on top of the Algorand blockchain will come before the end of this year, Koibanx CEO and co-founder Leo Elduayen told CoinDesk.

“We want to make business transactions and any other commercial act secure, transparent, agile and automatic,” Elduayen said.

Koibanx first approached El Salvador’s government after it passed a law in June that made bitcoin legal tender in the country, Elduayen said.

“We assumed that a government that is willing to take this type of measure might be also open to use or leverage blockchain technology for other aspects – not only for what the law defines itself, but for other government areas,” he noted.

Koibanx has already started working with El Salvador’s National Registration Center (CNR) on the project, Elduayen said.

According to Elduayen, each person or legal entity will have its own address containing tokens or hashes with documentation. In addition, all transactions between private companies or individuals with different government entities will be recorded in the Algorand protocol.

Elduayen clarified that money won’t be exchanged on the platform, but securities or rights, such as property titles or bank guarantees, will be.

In July, local media published a report that El Salvador’s government was planning to launch a native cryptocurrency that consumers would be able to use to pay for services.

Elduayen noted that Algorand’s blockchain could support a national stablecoin for El Salvador, but said that it is not in the plans at the moment.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.

Andrés Engler

Andrés Engler was a CoinDesk editor based in Argentina, where he covers the Latin American crypto ecosystem. He holds BTC and ETH.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.



Read more about