Programmers from 23 countries will compete to create the best Bitcoin-based banking product 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 since 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 run 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 those of build a bitcoin-enabled bank; redesign and implement its own system for sending and receiving 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 CryptoNews.
Banco Hipotecario gives details on 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 the Mortgage Bank, Milena Mayorga placeholder image, 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 adheres to the country’s legislation, giving the BTC an exclusive character.
Likewise, 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 hold in reserve.
When asked about how a bank can venture 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 From 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.