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.
“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.
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