El Salvador to Launch Government Blockchain Infrastructure on Algorand This Year

El Salvador to Launch Government Blockchain Infrastructure on Algorand This Year

The government of El Salvador has signed an agreement with Latin American asset tokenization and blockchain financial infrastructure company Koibanx to develop the country’s blockchain infrastructure on top of the Algorand blockchain.

Leo Elduayen, CEO and co-founder of Koibanx, told CoinDesk that the ability to store official documents digitally on top of the Algorand blockchain will arrive by the end of this year.

Elduayen said, “We want to make business transactions and any other business practices secure, transparent, agile and automated.”

Koibanx first approached the Salvadoran government in June after it passed a law making bitcoin legal tender in the country.

“We believe that a government willing to take such a step may also be willing to use or leverage blockchain technology in other ways, not only as defined by the law itself, but also in other areas of government,” Elduayen noted.

Koibanx has already begun working with El Salvador’s National Registry (CNR) on the project.

According to Elduayen, each person or legal entity will have its own address, containing tokens and hashes with documents, and in addition, all transactions between private companies or individuals and different government entities will be recorded in the Algorand protocol.

Elduayen also clarified that funds will not be exchanged on the platform, but securities or rights, such as property titles or bank guarantees, will be exchanged.

In July, local media published a report that the Salvadoran government was planning to launch a local cryptocurrency that consumers could use to pay for services.

Elduayen noted that Algorand’s blockchain could support El Salvador’s national stablecoin, but he said it is not currently in the works.