Bitcoin Beach Bank, a banking institution with bitcoin (BTC) as its main currency, is the next piece to be added to the Bitcoin Beach project in El Salvador. This has been the epicenter of the bitcoiner revolution in the Central American country.
Through an interview conducted by Iván Gómez, head of the editing department of CriptoNoticias, with the co-founder and president of Galoy, Chris Hunter, this information could be corroborated. During the dialogue —that can be seen on our YouTube channel– It was confirmed that the plan is already underway and could be materialized in early 2022.
Galoy is the American company that is in charge of the development of the Bitcoin Beach Wallet, a BTC wallet that has been a fundamental part of the Bitcoin Beach project. However, according to Hunter, one of the goals of the bitcoin bank is to be a tool that turns Bitcoin Beach into a self-sustaining project.
“My company, Galoy, will continue to support this new bank, the Bitcoin Beach Bank, so to speak. We want this to become its own baby; and not just your own baby but your own child, adolescent, and adult. We want it to become number one in providing banking solutions with bitcoin for Salvadorans, both at the level of private consumers, as well as businesses and sellers ”.
Chris Hunter, President and Co-Founder of Galoy.
Another objective of the Bitcoin Beach Bank is the creation of jobs in El Salvador. Hunter told CriptoNoticias that they have already hired one of the executives who will be part of the staff of this bank and stressed that he is a Salvadoran. It is expected that between February and March 2022, the Bitcoin Beach Bank will already have a payroll of about 15 employees, all natives of El Salvador.
In the future, the president of Galoy foresees that the Bitcoin Beach Bank will have hundreds of Salvadoran employees, as its operations and the Bitcoin Beach project in general grow.
The impact of Bitcoin in El Salvador as a product of education
CriptoNoticias was recently present at a couple of highly relevant events for the Latin American bitcoiner community: Adopting Bitcoin and LabitConf. Both conventions took place in El Salvador in November of this year, during a week that they called «La Bitcoin Week«. The purpose was to promote the use of bitcoin and educate the population about it.
It was in the framework of Bitcoin Week that CriptoNoticias took the opportunity to interview Chris Hunter; who, as mentioned above, is the co-founder and president of Galoy. This company, in addition to being in charge of the Bitcoin Beach project in El Zonte, El Salvador, also participated in the organization of the Adopting Bitcoin event.
Hunter commented that when he arrived in El Salvador in August 2020 to work on the proof of concept for the Bitcoin Beach Wallet, he did not expect everything to change so radically in favor of the use of bitcoin in this country.
The adoption of bitcoin (BTC) as legal tender in El Salvador was a crucial event for the Bitcoin Beach Wallet to be as successful as it has been so far, according to Hunter.
While the satisfaction that the team behind the development of the Bitcoin Beach Wallet can feel is due in part to the pro-bitcoin measures of the Salvadoran government, there are also other factors that have played an important role in the success of this project.
Galoy President explained that one of its priorities is the education of the citizens of El Zonte regarding the use and operation of Bitcoin. One of their strategies for this has been the use of ambassadors. These are people who go to communities and interact directly with people, on an individual basis. There they explain basic concepts about Bitcoin and why it is beneficial for them to have this cryptocurrency. They also teach them how to download and use the Bitcoin Beach Wallet.
In addition to the educational approach of Bitcoin Beach, Hunter commented that it is also necessary to have an optimal level of technological development to start a project like this. In the case of Bitcoin Beach, its technical team has developed its tools and they are open source; that is, its source code is available to anyone who wants to use it, and even make modifications to create their own tool, free of charge.
“There are two perspectives on this. On the one hand, our company is creating the Bitcoin Beach Wallet and we want it to be successful; But there is something even more important, from a humanitarian perspective, we want to see Bitcoin succeed in El Salvador. This is very important for Salvadorans, just as it is very important as an example for the rest of the world ”.
Chris Hunter, President and Co-Founder of Galoy.
Hunter mentioned on several occasions that he is convinced that bitcoin is real money and that the main goal of his company is to make it easier for people to use this cryptocurrency. However, the bitcoiner also clarified that what has been achieved in El Zonte is not a seed that germinates overnight.
The success of Bitcoin Beach has been the product of the arduous effort of many people who have dedicated themselves to the mission of educating about Bitcoin, reinforcing the confidence of its potential users and taking advantage of every door that has been opened along the way to accelerate progress.
Bitcoin Beach Wallet is not the ideal wallet for every bitcoiner
Despite the efforts that Galoy and its president, Chris Hunter, have put in towards the adoption of Bitcoin in El Salvador, the Bitcoin Beach Wallet does not meet the standards of many bitcoiners around the world.
The aspect that bothers bitcoiners most about the Bitcoin Beach wallet is that its users have no knowledge of their private key. In other words, all the BTC deposited in these wallets is guarded by a third party. People do not have complete control over their satoshis. This goes against the philosophy of Bitcoin, whose principle is that each user is their own bank and I have full control over their money.
In an article previously published by CriptoNoticias, mention was made of the centralization in the operation of Bitcoin Beach Wallet. In this regard, Michael Peterson (co-founder of the project, along with Chris Hunter) commented to this medium that “usability should be the main focus to attract people to the ecosystem.” So, in your opinion, custody of the funds in this wallet is justified.
Peterson added to his comments that the goal is for Bitcoin Beach Wallet users to eventually feel secure enough and used to Bitcoin to use third-party non-custodial wallets.
Importantly, the native wallet of the Bitcoin Beach project works with the Bitcoin micropayment network known as the Lightning Network (LN). This technology allows you to send and receive payments almost immediately and for a minimal commission.
In October this year, CryptoNews reported that the Bitcoin Beach Lightning Network node had exceeded one million US dollars in liquidity. In other words, it was possible to send up to USD 1.1 million (17.3 BTC at the exchange rate at that time) through the Bitcoin Beach Wallet. Today that figure has dropped a bit and is around USD 820,000 (16.6 BTC according to its current market value), according to the site 1ML.com.