Bancoagricola Will Accept Bitcoin as Payment for Loans, Credit Cards, and Other Services

Bancoagricola is partnering with payments startup Flexa to offer a broad range of Bitcoin-related services in El Salvador.

Bitcoin’s adoption in El Salvador has been rocky. Nonetheless, financial institutions are already taking steps to ensure compliance with the regulation.

Bancoagrcola, the country’s largest financial institution, was one of the first banks to adopt Bitcoin-compatible technology solutions and is currently developing its infrastructure to offer Bitcoin services through cooperation with digital payments startup Flexa.

According to an official Flexa press release, the integration of both parties would enable Salvadorans to access basic financial services regardless of whether they use Bitcoin or dollars. The company stated that Bancoagrcola began accepting Bitcoin for loans, credit cards, and merchant products and services as quickly as feasible in order to comply with the Bitcoin Law.

The Bitcoin Law, introduced by President Bukele in June and adopted a few hours later by the country’s pro-Bukele congress, establishes that Bitcoin would be recognized as legal cash, mandating its acceptance by any economic agent with the bare minimum essential means to use it.

Due to the fact that Bitcoin operates outside of the banking system, the government developed the Chivo wallet and gave away $30 in Bitcoin to any Salvadorans who downloaded it. The Chivo wallet is custodial, does not rely on any bank directly, and enables instant and reportedly fee-free conversion between Bitcoin and dollars.

However, Bancoagrcola would take this a step further in terms of integrated financial services. Additionally, the agreement will enable Bitcoin interoperability at Bancoagrcola’s points of sale without requiring users to use the Chivo Wallet.

Banks Are Not the Only Entities in El Salvador Embracing Innovation

Bancoagrcola is a subsidiary of Bancolombia, the largest bank in Colombia. Bancolombia is collaborating with US-regulated cryptocurrency exchange Gemini to offer similar services in that nation, leveraging the regulatory sandbox that has been in place since 2019.

The integration with Flexa would be a first-of-its-kind breakthrough on a global scale. Bancoagrcola’s COO, Carlos Mauricio Novoa, stated that they are optimistic about the future and intend to continue developing their services during the country’s new economic stage.

“We are excited to be the first financial institution in El Salvador to enable bitcoin access for our customers across our entire suite of financial products and to enhance financial inclusion. Flexa has been instrumental in helping us prioritize our customers’ experiences using bitcoin as legal tender in El Salvador; we look forward to continuing to innovate alongside them for a long time to come.”

Salvadorans would have complete Bitcoin-to-fiat interoperability under this arrangement, even if they used a third-party wallet in addition to the government-sponsored Chivo wallet.

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