Bank of America, one of the biggest financial institutions based on total assets, believes that El Salvador can benefit greatly with its latest decision to Bitcoin(BTC).
Bank Analysts said that El Salvador’s decision to recognize BTC as legal tender can give more opportunities to the country. It includes streamlined remittances, promoting digitization of finance, Greater consumer choice, and opening up the country to American firms and digital currency miners.
The latest Global BoA Research Report Says: BoA notes that remittances account for a staggering 24% of El Salvador’s gross domestic product, but most goes to transaction fees.
“Using Bitcoin for remittances could potentially reduce transaction cost compared to traditional remittance channels,” said the report. “The idea is that Bitcoin can be used as an intermediary for cross-border transfers, so that dollars are converted to bitcoin by the sender and then converted back to dollars domestically by the recipient,” the report adds.
“More than 70% of the adult population of El Salvador does not have a bank account. For that reason, democratizing access to electronic payments, through Bitcoin, has a progressive touch.”
In June 2021, El Salvador became the first nation-state to accept Bitcoin as a legal tender. This marks a significant milestone in the evolution of digital currencies from obscurity to mainstream acceptance.
Survey data shows that half of the people in El Salvador have doubts about using bitcoins as legal tender. Those who choose to adopt BTC for transactions can convert the payment to dollars utilizing the “Chivo” bitcoin wallet.
Since El Salvador acknowledged Bitcoin, several different Latin American nations have indicated they’re pursuing their own crypto techniques.
