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Sunday, September 19, 2021

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“With bitcoin, El Salvador has the potential to be the Singapore of the Americas”

Key facts:
  • For José Luis Guillén, CEO of Coincaex, the country’s economic transformation is already underway.

  • The Central American nation now has the challenge of educating the population about cryptocurrencies.

“The adoption of bitcoin (BTC) in Central America is in its infancy, but it will soon take a quantum leap,” says José Luis Guillén, CEO of Coincaex, the first exchange to reach El Salvador. This country, from September 7, will recognize the cryptoactive as legal tender.

“Geographically we were in the right place, in the right business and at the right time,” said the Guatemalan businessman about the moment when the Legislative Assembly of El Salvador approved the Bitcoin Law on June 9. As soon as it happened made the decision for the company he runs to move its operations center towards the nation that adjusted its legal framework to drive the adoption of cryptocurrency.

Now, two months after arriving in El Salvador, he envisions the country as the financial center of the American continent. In fact, associates it with Singapore, which went from being a poor island to one of the richest countries in the world. The difference is that one fueled its economic growth centered on the dollar, more than half a century ago, while the other is doing it now based on bitcoin.

A few days after the law enters into force in El Salvador, the first stage of development of its economic transformation is already underway, as Guillén pointed out during an exclusive interview with CriptoNoticias. “More than 150 new companies are moving capital in the country, many have already opened offices or are planning to start some type of operations,” he adds.

Among the reasons that explain what the Bitcoin Law of El Salvador represents for the industry in the region, Guillén exposes the need for all startups they have a fair regulation that encourages the market.

El Salvador forces banks to open our accounts and serve us [a los operadores de servicios]. That is super hopeful because it turns out that in Guatemala we have to play cat and mouse with the banks. And when we tell them that we trade digital assets, they close the doors on us, even when they have no legal argument to back them up to do so. But being a private company they can decide not to do business with us if they don’t think so.

José Luis Guillén, co-founder of the Coincaex exchange.

The CEO of the Coincaex exchange José Luis Guillén believes that El Salvador launched its economic transformation from the moment it approved the Bitcoin Law. Source: Screenshot.

Educating about bitcoin: the great challenge for El Salvador

El Salvador has attracted the world’s attention since President Nayib Bukele first announced that bitcoin would become legal tender. Nevertheless, there are some challenges facing the nation to make the quantum leap that would make it the financial center of the continent.

Reflecting on these challenges, Guillén points out that the key for bitcoin adoption to gain momentum in El Salvador is education. He comments that there is so much misinformation that the population is afraid to use the cryptocurrency.

That is why he hopes that soon the organization he presides, the Central American Association of Cryptocurrency Users (ACUCRIP), will coordinate educational activities on bitcoin in El Salvador as it has done so far in Guatemala, Honduras and Costa Rica.

Consider that education is essential for people to understand that bitcoin is a store of value asset and not quick wins. He adds that, with greater awareness in the population about the operation of the protocol, adoption will gain momentum in a more organic way and will not only depend on the rise in price, as is currently the case.

I find it fabulous that bitcoin came to be incorporated into the educational system of El Salvador, but not only as a disruptive technology, but as the evolution of a system that has its roots in 10,000 years of history. I also believe that the schools of economics in our countries should be more honest about the history of money because the academy focuses on a central banking model that no longer works. We have already seen that inflation is the tax that hits the most vulnerable people the hardest, so I think it is necessary for them to focus on studying these new models of digital scarcity.

José Luis Guillén, CEO of Coincaex.

Guillén frequently participates in educational activities about bitcoin in which he talks about the evolution of money. Source: Instagram / Coincaex.

From Guatemala with bitcoin payment gateway for El Salvador

The cryptocurrency exchange Coincaex is about to inaugurate its headquarters in El Salvador, and from there it will offer its services to the countries of Central America and the Caribbean.

The company with more than 4 years operating in Guatemala, offers the trading service of bitcoin, ether (ETH), ERC-20 tokens and stablecoins. “We are also introducing a business payment processor that is specifically designed for El Salvador,” says Guillén.

Its proposal is to provide technology to third parties through an API (application programming interface) that makes it possible for large companies to receive payments in bitcoin with protection against possible episodes of volatility.

To achieve this, Guillén mentions the support that the startup receives from different liquidity exchanges with cryptocurrencies, stablecoins and fiat money that allows them stability, minimizing risks.

At the moment we are in the testing phase. Our API connects with the companies’ points of sale and basically what we give them is a button that allows them to charge in bitcoin. To do this, they do not have to acquire new hardware, they only have to press a button and that already offers them a new form of payment, through our platform, with a daily compensation according to what they are charging in crypto.

José Luis Guillén, CEO of Coincaex.

The CEO of Coincaex captured media attention by becoming the first exchange to reach El Salvador. Source: Instagram Coincaex.

He assures that his service takes advantage of the government’s Chivo Wallet because it is already proven technology in real stores. It is also integrable with the payment systems that companies already have. From their point of view it is a system that no one is offering in El Salvador.

Imagine a large business that has any number of cashiers collecting. How will you manage to control and manage all those payments you are making? Are you going to install a phone with Chivo Wallet in each ATM? That is precisely where we enter with our technology to provide this service to private companies.

José Luis Guillén, CEO of Coincaex.

In any case, Guillén is confident that his service will soon win new allies now that bitcoin adoption will gain new momentum, “Not by taste, but by necessity”, as he commented.

I believe that the adoption of bitcoin is going to come from the private sector and more so now that the largest of the bubbles is about to burst. I mean the dollar bubble. When it happens, what history tells us is that in times of hyperinflation and economic crisis, people and companies will seek to safeguard their reserves. That is why I think that adoption will come from the private sector and we are already seeing it, because there are many companies in Guatemala interested in our payment processing service because they do not want to be left behind in this technological leap.

José Luis Guillén, CEO of Coincaex.

Meanwhile, El Salvador is conditioning its infrastructure and preparing to comply with international regulations as the Bitcoin Law is about to go into effect. In addition, as this digital newspaper has reported, President Nayib Bukele already has a draft ready for the new National Constitution of that country.

The Magna Carta would establish digital currencies as constitutional, thereby endorsing the use of “non-physical, non-specific currencies”, although it is not yet known which ones will be covered by this article of the law.

Tammy Sewell is our Writer and Social at OICanadian.com. Tammy loves sports, she writes our celebrities news. She spends time browsing through several celebs news sources as well the Instagram. Email: [email protected] Phone: +1 513-209-1700

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