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Banco de El Salvador launches hackathon on Bitcoin-based banking products

Programmers from 23 countries will compete to create the best banking product based on Bitcoin for Banco Hipotecario, a private commercial banking entity established in El Salvador.

The Bitcoin Bankathon is the bet of this entity to develop products that adapt to the new economic, financial and banking reality of the country from the declaration of bitcoin (BTC) as legal tender in El Salvador.

The entity will distribute a total of USD 150,000 among developers from around the world, who will use the tools and applications provided by various companies specialized in cryptocurrency and financial technologies.

The hackathon will take place from November 19 to December 8 . During the first two weeks, from November 19 to 30, the competition will be virtual. In the first week of December, the developers will travel to the Central American country to present their proposals. Registrations closed today.

The challenges of the hackathon will be to build a bank enabled for bitcoin; redesign and implement its own system for shipping and receipt of remittances; how to tackle climate change from a banking perspective; how to financially empower women through cryptocurrencies, and how to empower merchants through smart contracts, reads a press release obtained by CriptoNoticias .

Bank Hipotecario gives details about the incorporation of bitcoin to its services

On the morning of November 16, in the context of El Salvador’s Bitcoin Week, a press conference was held with Celina Padilla, president of Banco Hipotecario , Milena Mayorga , Minister of Economy of El Salvador, and Fabrizio Mena , Undersecretary of Innovation of El Salvador, where CriptoNoticias was present.

Celina Padilla offered statements to CriptoNoticias, indicating that the banking products to be developed would not be based on other cryptocurrencies , but rather stick to to the legislation of the country, giving exclusivity character to BTC.

Also, for the moment, it indicates that they are in the exploration phase and at the moment no credit services or investment vehicles will be created that offer exposure to Bitcoin. Also, for now, the bank does not plan to buy BTC to keep in reserve.

When asked about how a bank can enter into international remittance services, Padilla indicated that the intention is not to compete with Chivo wallet, which is already used as the main tool for this purpose in the country. “The intention is to be a second player,” he said.

Despite the term in his name that suggests that the bank is dedicated to the real estate sector, Padilla corrects indicating that more than 80% of its clients are part of the productive sectors of El Salvador.

The Bitcoin week continues in El Salvador with two conferences, LaBitconf and AdoptingBTC, in addition to other activities organized by the community, and CriptoNoticias is present.

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Sandra Loyd
Sandra is the Reporter working for World Weekly News. She loves to learn about the latest news from all around the world and share it with our readers.

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