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- El Salvador has now added two more firms to its roster: AlphaPoint, a software company based in New York, and Netki, a digital identity supplier based in Los Angeles.
- Netki joined the Chivo project and will be offering its know-your-customer/anti-money-laundering (KYC/AML) product OnboardID to validate users and secure the app from fraud.
- Chivo will support the front-end and back-end infrastructure that drives the wallet and unifies the entire ecosystem.
El Salvador’s Chivo had a difficult start
Chivo, which has over 4 million members, is a wallet that accepts both Bitcoin and US money. Over the last few months, the app has been plagued by issues ranging from identity theft to suspended accounts and unsuccessful transactions.
Since its inception in September, several crypto businesses have donated to the initiative. While we have some basic information about their contributions to the app, it hasn’t always been clear how they fit together or who else might be engaged.
However, the government has subsequently hired some new US companies to work on enhancing the app.
El Salvador has now added two more firms to its roster: AlphaPoint, a software company based in New York, and Netki, a digital identity supplier based in Los Angeles.
Furthermore, the corporations involved in the project’s early stages have spoken little — or nothing — about the specific issues that many Chivo customers have noticed.
Chivo will have front-end and back-end support
AlphaPoint has been in the cryptocurrency market since June 2013 and has collaborated with over 150 crypto exchanges, brokerages, and wallets in over 35 countries. Chivo is the firm’s first federal contract.
According to a news release, AlphaPoint now “supports the front-end and back-end infrastructure that drives the wallet and unifies the entire ecosystem,” which includes the mobile app, mobile point-of-sale processing, merchant website portal, call-center support software, and administrative dashboard.
AlphaPoint CEO Igor Telyatnikov told The Block, “Our actual application went into production in mid-December.” He also mentioned that the company was “engaged in the early conversations” with the El Salvador government and that they first constructed a prototype last summer, after El Salvador’s president Nayib Bukele revealed an intention to make Bitcoin legal tender in June.
Anti-money-laundering system in Chivo
Identity theft has been one of the most common issues regarding Chivo. There have been numerous cases of people claiming the $30 Bitcoin incentive falsely using identity numbers.
Netki, a digital identity expert based in Los Angeles, stated on January 18 that it has joined the Chivo project and will be offering its know-your-customer/anti-money-laundering (KYC/AML) product OnboardID to validate users and secure the app from fraud.
Netki is a service that verifies customers and protects them against fraud.
In October, social media users said that people were reportedly avoiding Chivo’s verification process by exhibiting a photocopy of an ID instead of a real one or shooting a photograph of a movie poster figure instead of a real face.
That is most likely why Chivo has added a new contributor who specializes in fraud prevention.
ALSO READ: European Union cracking down on anonymous crypto wallets
Steve Anderson is an Australian crypto enthusiast. He is a specialist in management and trading for over 5 years. Steve has worked as a crypto trader, he loves learning about decentralisation, understanding the true potential of the blockchain.
