DelNorte initiates real estate and land tokenization in El Salvador
El Salvador, the Central American nation pioneer in the state adoption of the digital economy through Bitcoin, has made international news in the last week for the announcement of the Ministry of Communications of that country regarding the incentives of more than $100,000 in bitcoin that will be delivered to entrepreneurs in the community of Soyapango, in San Salvador.
According to information from the ministry and the Bitcoin Archive, the purpose of the grants to be paid by the Bitfinex platform is to promote and develop the region’s digital economy and reduce the violence and recklessness imposed by the gangs that “control” the community.
On the other hand, the Central American country received a little over a month ago more than forty representatives of state banks from various countries, as well as renowned entrepreneurs, investors and developers of the cryptocurrency industry and the digital economy in general, with the intention of boosting the DeFi initiative promoted by the Government.
In addition, at the time of writing, El Salvador has also announced that it will open the first farm for mining cryptocurrencies entirely with solar energy, in an attempt to reduce environmental impact and reduce climate change.
It is a stage of substantial progress for the Salvadoran digital project that, last June, also experienced the start of the tokenization of the territory and real estate sector in the municipality of San Bartolomé de Perulapía, thanks to the municipality’s partnership with the global technology company DelNorte.
In March 2022, Delnorte Holdings Inc. launched its digital platform in San Salvador following an agreement with the municipal mayor’s office of San Bartolomé Perulapía, Cuscatlán, to digitize the property titles of movable and immovable assets of the locality legally recognized with the blockchain technology of its ecosystem.
The agreement was signed in order to improve land management, secure and certify the ownership of property and tokenize property titles through digital certificates (NFT 2.0) developed by our company and give them a value in the digital markets of the world.
During the launch of our platform in the Salvadoran capital, in an event attended by investors, experts and world leaders, the former president of Haiti, Laurent Lamothe, expressed via Google Meet that the arrival of DelNorte would mean a substantial advance for El Salvador in its leading role in the new digital economy of which the country is a pioneer.
San Bartolomé Perulapía is a rural municipality located on the outskirts of San Salvador with approximately ten thousand inhabitants. Like many Salvadoran communities, its territorial, cadastral and real estate conflicts were affected and distorted by the civil war (1979–1992).
This wartime distortion, coupled with the lack of innovation and the use of obsolete technologies by the relevant institutions, meant that thousands of properties around the country did not have a secure, reliable and accurate registry.
For this reason, the incursion of the DelNorte platform in the country means an integral work in the management, control and validation of property titles, which will guarantee the territorial organization of the municipality, ensuring the possession of the properties to their owners and mobilizing millions of dollars in resources through the participation of the owners in the banking system by means of their property certificates.
According to the project’s implementation manager in El Salvador, David Rodríguez, “our company’s pilot plan includes around fifteen hundred properties, for which existing physical records will be digitized, and will be complemented with information obtained through government sources (National Registry Center) and a data collection field campaign throughout the municipality”.
Rodriguez explains that “one of the transcendental benefits that DelNorte will provide to the pilot population (and later at the national level) is the simplification of the process of buying and selling real estate; especially for people living abroad who are looking to invest in the country”.
For now, the process of land and real estate tokenization in El Salvador has started with the first stage of planning, identification, digitization and validation of physical property files, obtaining institutional support and technical and human equipment.
It is expected that the digitization of physical files will be complemented with information from the National Registry this July (when the field work will begin), will be completed by the end of August and the first property transaction will be generated through the platform in September.
In addition, due to the interest of the central government in the development of technological projects linked to the digital economy, we are receiving the help of 7 and up to 11 interns from the municipality to work on the different development tasks of the DelNorte platform.
Such funding from the Salvadoran central government reduces the costs of project development and adds to the commitment of the municipal government and our platform.
Once the pilot plan is completed in San Bartolomé Perulapía, it will be evaluated and examined in order to work on the expansion plan for the whole country.
With the implementation of DelNorte’s blockchian technology, communities will improve their cadastral distribution, land use planning, real estate sectors, industries, legal systems, digital education and economy.