Crypto

River Financial Is Powering The Chivo Wallet’s Lightning Transactions. Why?

Wait a minute, is River Financial associated with El Salvador’s bitcoin story? Since when? Apparently, the extremely appreciated banks is now processing the Chivo Wallet’s Lightning deals. Which appears like an action in the best instructions, however likewise features relatively unneeded counterparty danger. Why isn’t El Salvador managing the operation internally? And, will River Financial enhance the Chivo Wallet’s functionality?

In a Twitter thread revealing RLS: River Lightning Services, its brand-new item, River Financial dropped the bomb. Without any excitement, they specified, “RLS is proud to power LN transactions for El Salvador’s Chivo wallet.” They connected to the item’s main website, which includes a Chivo logo design in the popular customers’ area. On the website, the business clarifies precisely what the item does:

“River Lightning Services (RLS) is the fastest, simplest API for enabling Bitcoin Lightning Network deposits and withdrawals in your product without running any Lightning infrastructure yourself.”

That sounds best for business, services, stores. Is it proper for an entire nation, though? Maybe it isn’t, however it’s better than the secret that utilized to surround the Chivo Wallet task. Was Algorand associated with any method, and if so, why? Rumors flew, however no one understood for sure. Nowadays, we understand River Financial is looking after the Lightning side of things. A business with a beneficial credibility that runs a few of the bigger nodes on the Lightning Network.

What Is River Financial’s RLS?

Presenting the brand-new custodial item, River Financial CEO Alex Leishman declares that “bitcoin is beginning to cross the chasm from a store of value to a transactional currency.” And what much better location to evaluate that theory than El Salvador? For its part, River Financial was “the first financial institution in the United States to support Lightning Network deposits and withdrawals for clients.” The facilities they established is the basis for the brand-new item. 

“Last year we realized that this infrastructure and our operational expertise might be useful for other firms looking to integrate Lightning functionality into their applications, so we covertly built a public API for it. Since then, we have onboarded some incredible organizations to this API. One of these is El Salvador’s Chivo wallet, for whom we have been proudly powering Lightning transactions for almost a year.”

So, River Financial has been processing Chivo’s Lightning deals for a year now? Interesting. Back to RLS, River Financial threatens the world stating that they’ll begin “with Bitcoin and eventually supporting dollars and other assets over Lightning as the Taro project matures.” And then, the business discusses how the item works underneath the hood:

“When onboarding with RLS you are given an account that you can fund to and sweep from on-chain. Processing LN withdrawals is as easy as making an API call with an invoice to be paid. You can easily generate invoices for deposits and we will notify your system via webhook when an invoice is paid.”

BTC cost chart for 10/14/2022 on FTX | Source: BTC/USD on TradingView.com

The Risk

Let’s not elude, River Financial is an American business. A completely certified monetary business that would need to follow every order from the United States federal government. That business has custody of all of the funds from every Salvadoran that utilizes the Chivo Wallet. President Bukele and his bitcoin group are putting all of their people’ BTC within reach of the United States federal government, running the risk of censorship and seizure. Just for benefit. 

The bitcoin network is integrated in a manner in which permits the Salvadoran federal government to do it internally. El Salvador can and ought to hold their own secrets and run their own Lightning nodes. Sovereignty is essential. 

On the other hand, infant actions. They’re now in River Financial’s hands; which is not perfect, however it’s development. Hopefully, El Salvador is developing its own internal structures and groups. Meanwhile, River Financial assures to “continue to ship new features to give our customers access to the latest features the Lightning Network has to offer.” Something that, let’s be sincere, no federal government is prepared to do.

They ought to be prepared to hold their own secrets, however.

Featured Image by Sven Lachmann from Pixabay | Charts by TradingView

CoinCorner, El Salvador flag waving



Michael Evans

Professional writer, editor, and producer with over a decade of experience. I'm an experienced editor who has written for a variety of publications, and I specialize in editing non-fiction articles, news, and business blogs.

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