ChivoLeaks: how Chivo, El Salvador's Bitcoin wallet, would work

During the afternoon of today was published an alleged leak about the operation of Chivo, the Bitcoin (BTC) wallet developed by the government of El Salvador.

The information was published on the humorous Twitter account El Tapudo, but they assured that this time it is not a joke. It should be noted that this account has demonstrated in previous messages its opposition to the current government of El Salvador and its President, Nayib Bukele, as well as being against the Bitcoin Law

.

In a diagram “redrawn from a leaked document in August 2021,” it shows the infrastructure based on Athena, the same company that claimed it would install 200 Bitcoin ATMs in El Salvador, as reported by CriptoNoticias

.

Athena’s servers would be based on Amazon Web Services. In turn, it would allow interconnection with exchanges, security companies, national banks, and the Bitcoin blockchain, as well as its second layer, the Lightning

network.

The Mexican exchange Bitso,and the Binance exchange, would be in charge of the bitcoin exchange and, together with the North American exchange Coinbase

, would do the custody of the funds. ChivoLeaks: how Chivo, El Salvador's Bitcoin wallet, would work ChivoLeaks: how Chivo, El Salvador's Bitcoin wallet, would work This diagram illustrates the operation of the Chivo wallet and its coordination with the Bitcoin network, the national government of El Salvador, private and public national banks, as well as other operators. Source: El Tapudo.

Know your customer: transaction and identity verifiers participate in Chivo

For its

On the other hand, the firms CipherTrace and Elliptic would offer a transaction tracking and identification service, or Know Your Transactions (KYT), and the firm VU Security would provide customer tracking, Know Your Customer (KYC), to identify registered users.

Likewise, the Central Reserve Bank of El Salvador (BCR) would also have access to the system, as administrator of the trust that the State would have acquired to finance the liquidity available in the network of the wallet, accessible to users of Chivo.

In this regard, it should be recalled that President Nayib Bukele reported that they would be giving USD 30 in BTC to Salvadoran users of the Chivo wallet, not convertible to dollars in order to encourage the use of bitcoin, reported CriptoNoticias.

Similarly, Chivo’s diagram shows, the government would manage users’ credentials, such as national ID number, and passport, through its own applied interface or official API.

As for other entities, Banco Hipotecario de El Salvador, a state-owned bank, will be the payment gateway (input and output) for other national public and private banks. Also, the QUIPU platform would be the credit and debit card processor.

As for communications, the operator Mobile SV will manage SMS messaging, while the firm Twillio will do the same in the United States (USA).