El Salvador and Linguard Labs Relaunch Chivo Platform

The government of El Salvador has partnered with Linguard Labs, a financial technology company focused on digital finance, to relaunch Chivo as a financial platform for Salvadorans worldwide. Linguard Labs has acquired a majority stake in Chivo, while the government remains a shareholder. The deal is consistent with El Salvador’s program with the International Monetary Fund (IMF).

The new platform is being developed in San Salvador with support from major financial and crypto companies. The platform aims to provide financial services to Salvadorans who lack access to traditional banking. Users with compatible phones and valid IDs will be able to hold funds, send and spend money, borrow, and exchange dollars for digital assets.

Chivo will also offer microloans and cash advances based on users’ income and payment activity on the platform, rather than their banking history. Merchants will be able to access financing to purchase inventory, hire staff, and expand their businesses.

Regular users will be able to send money from the United States to El Salvador without fees. The platform will also support payments at participating merchants in Bitcoin, dollars, stablecoins, and other digital assets. Users will earn cash back on purchases and be able to spend their balances with debit cards.

Chivo will operate under El Salvador’s laws on data protection, governance, and financial stability, with user information protected under the supervision of relevant authorities.

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