El Salvador’s central bank accepts Qredo’s registration to provide crypto services

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El Salvador’s central bank accepts Qredo’s registration to provide crypto services

Decentralized finance firm Qredo has received approval for registration as a Bitcoin (BTC) service provider in El Salvador.

In a Wednesday announcement, Qredo said the Central Reserve Bank of El Salvador accepted the crypto firm’s registration as a recognized Bitcoin service provider as laid out in the country’s Bitcoin Law. According to the registration website, Qredo was authorized to custody BTC, provide Bitcoin wallets, process payments and act as a digital asset exchange.

As a crypto service provider, Qredo said it was required to be in compliance with local laws and international practices around digital assets as well as risk management to prevent losses or theft. Other registered providers in El Salvador include Chivo, the firm behind the state-issued crypto wallets and kiosks — similar to Bitcoin ATMs — as well as Paxos Trust Company, Paxful and Bitcoin payment processor OpenNode.

“The BCR’s decision opens the door to further opportunity for Qredo in El Salvador, and increases our footprint in Latin America — a region we believe has enormous potential for digital assets,” said Qredo CEO Anthony Foy.

A survey from the Salvadoran Chamber of Commerce reported in March suggested that 14% of local businesses had transacted using BTC since the Bitcoin Law went into effect in September 2021. Salvadoran President Nayib Bukele has continued to push crypto-related initiatives in the country including a Bitcoin City backed by $1 billion in BTC bonds, using geothermal energy from volcanoes to mine crypto and announcing major buys on social media. As of January, the head of state had purchased 1,801 BTC.

Related: El Salvador Bitcoin wallet shows ‘strong sign of adoption,’ exec says

With roughly 6.5 million residents, El Salvador is one of the most crypto-friendly parts of Latin America, but the actions of governments in neighboring countries have suggested some may be on the way to taking the orange pill. In April, Panama’s legislature approved a cryptocurrency law aimed at making the country “compatible with the digital economy, blockchain, crypto assets and the internet.” Brazil’s senate followed by approving its own Bitcoin Law to create a regulatory framework for cryptocurrencies