Central Bank of El Salvador Accepts Qredo Registration as a Crypto Service Provider

Decentralized finance company Qredo has received approval to register as a Bitcoin service provider in El Salvador.

In a statement on Wednesday, Qredo said the Central Reserve Bank of El Salvador accepted the crypto firm’s registration as a recognized bitcoin service provider as stipulated in the country’s bitcoin law. According to the registration website, Qredo is authorized to host bitcoin, provide a bitcoin wallet, process payments and operate as a digital asset exchange.

As an encryption service provider, Qredo stated that it is required to comply with local laws and international practices surrounding digital assets, and to conduct risk management to prevent asset loss or theft. Other providers registered in El Salvador include Chivo, which has developed the country’s government-issued crypto wallets and kiosks (similar to bitcoin ATMs), as well as Paxos Trust Company, Paxful and bitcoin payment processor OpenNode.

Anthony Foy, CEO of Qredo, said: “The El Salvador Central Bank’s decision opens the door to further opportunities for Qredo in El Salvador and increases our footprint in Latin America – which we believe has huge potential for digital assets.”

A March survey by the El Salvador Chamber of Commerce showed that 14 percent of local businesses have conducted transactions using bitcoin since the bitcoin law came into force in September 2021. President Nayib Bukele of El Salvador has continued to promote cryptocurrency-related initiatives in the country, including a Bitcoin City backed by $1 billion in Bitcoin bonds, mining cryptocurrencies using volcanic geothermal energy, and announcing a BTC buying spree on social media. As of January, the head of state had purchased 1,801 bitcoins.

El Salvador, with roughly 6.5 million residents, is one of the most cryptocurrency-friendly regions in Latin America, but actions by neighboring governments suggest some countries may be embracing bitcoin. 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.” Subsequently, the Brazilian Senate approved its own bitcoin law, creating a regulatory framework for cryptocurrencies.

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