In an effort to leverage the recently approved Digital Asset Issuance Law, fintech company Koibanx aims to fortify its operations in El Salvador. Koibanx provides blockchain infrastructure for the financial system and seeks to facilitate payment methods using alternative assets.
Leo Elduayen, CEO of the company, revealed to “Diario El Salvador” that they have been offering Bitcoin services in partnership with financial institutions in the country for the past year. This engagement led to the establishment of an office in the territory.
Currently, Koibanx is in the process of obtaining a license as a digital asset service provider, which will enable them to expand their portfolio. Elduayen stated, “We are highly interested in investing in connecting our platform with the different payment networks and methods in El Salvador, and obtaining the digital asset license, which we have already applied for.”
According to the executive, with the advantages provided by the new regulations, their vision is to generate capital raising transaction flows and facilitate payment methods using alternative assets. Such endeavors are often challenging in other countries due to the lack of regulatory certainty.
“We are closely monitoring the progress of this law because we have been tokenizing assets for the past eight years on a regional scale. Additionally, El Salvador could become an extremely attractive platform for foreign companies and investors to establish a presence in the country and access new sources of financing,” Elduayen emphasized.
He added, “Given the current conditions, if the regulations continue to move in the direction we anticipate, we could definitely establish our operations center in El Salvador.”
On the other hand, Elduayen’s analysis suggests that the Bitcoin Law has prompted traditional banks to undergo a significant digital transformation process. This transformation extends not only to crypto and blockchain-related matters but also to digital payments.
“The law has encouraged banks to be the ones launching new products and solutions in the realm of digital payment methods,” highlighted the expert.
Koibanx’s plans to strengthen its operations in El Salvador reflect the growing potential of the country’s regulatory environment and its potential to attract international companies and investors. With the advancements in digital payments and the integration of blockchain technology, El Salvador aims to position itself as a leading hub for innovative financial services.