Saturday, August 13, 2022
Home Crypto News Market In A Surprising Gesture Of Support, Bank Of America Outlines Key Benefits...

In A Surprising Gesture Of Support, Bank Of America Outlines Key Benefits Of El Salvador Bitcoin Adoption

- Advertisement -
Follow-Us-On-Google-News

Bank of America analysts stated that El Salvador’s decision to recognize Bitcoin as legal tender could facilitate money transfers, financial digitization, give consumers more options, and open the country up to US companies and digital currency miners.

Read: Microstrategy CEO, Michael Saylor Defends $2.2 Billion Debt-Financed Bitcoin Buys


 

Bank of America, the US’s largest bank, recognized many benefits that Bitcoin offers El Salvador in an extraordinary gesture of support.

According to the bank, the introduction of the Bitcoin could reduce the cost of sending remittances. These remittances account for almost a quarter the country’s gross national product. This could in turn increase Salvadorans disposable income.

Another benefit of Bitcoin adoption is the provision of banking services to non-bank customers. 70% of El Salvador’s population does not have access to a banking account.

El Salvador, like Iceland, could also attract foreign direct investment flows.

Read: State Street The Second-Oldest Continually Operating United States Bank To Offer Crypto Services

The report writes:

Using Bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels. The idea is that Bitcoin could be used as an intermediary for the cross-border transfer, so that dollars are converted to Bitcoin by the sender and then converted back to dollars domestically by the receiver. Volatility could be reduced if conversions happen automatically.

If Bitcoin indeed lower transaction costs, then for every Dollar the Salvadoran sends home, a greater portion of that Dollar could be received by the recipient’s increasing their disposable income and reducing the portion of remittances lost to financial intermediaries.

Another positive implication is financial digitalization, More than 70% of adult population in El Salvador does not have a bank account, For that reason democratizing access to electronic payments, through Bitcoin, has a progressive touch.

One could make the case that adopting Bitcoin as legal tender is about more choice to consumers, embracing innovation and doing more business with American companies.” 

 





El Salvador became the first country to accept Bitcoin as legal currency in June. This was a significant milestone in the development of BTC.

Read: Michael Saylor “Bitcoin Is Digital Real Estate

International Monetary Fund and United Nations Economic Commission for Latin America & the Caribbean criticized the decision to integrate BTC in the El Salvador finance system.

World Bank also Refuses El Salvador Request To Assist With BTC transition as World Bank sees concerns with Bitcoin environmental impact and transparency as reasons why they would not support El Salvador decision to accept Bitcoin as an officially accepted currency. (Read More).

As El Salvador has recognized Bitcoin as legal currency, many other Latin American countries have suggested that they are developing their own cryptocurrency strategy.

- Advertisement -

Disclaimer

The content is for informational purposes only and may include the author’s personal opinion, and does not necessarily reflect the opinion of TheCryptoBasic. All Financial investments, including crypto, carry significant risk, so always do your complete research before investing. Never invest money you cannot afford to lose; the author or the publication does not hold any responsibility for your financial loss or gains.

Mark Bernnan
Mark Brennanhttps://thecryptobasic.com/
Mark Brennan has been active in the cryptocurrency sector since 2014. His love and passion for the nascent industry drove him to develop interest in writing about important developments and updates about cryptocurrencies and blockchain. Brennan, who holds a Masters degree in Business Administration, learned about the potential of blockchain technology. Aside from crypto journalism, Brennan runs an education center, where he educates people about the asset class.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

- Advertisment -

Recent News & Articles

IOG Says “Getting Things Right” Is The Priority After Cardano Investor Asked When Vasil Will Launch

  IOG has responded to ADA investors who are eager to know the exact date for the launch of the Vasil hard fork.  Input Output Global...

The Deputy Minister Of Digital Transformation Says Ukraine Should Launch A CBDC

Alex Bornyakov is in support of a digital hryvnia. In a four-tweet thread on Friday, Ukraine's Deputy Minister Of Digital Transformation, Alex Bornyakov, argues that...

Shiba Inu Lead Developer Gets A Harsh Response From “Can You Pet The Dog”

  "Can You Pet The Dog" Shuns Shiba Inu Game, Shiba Eternity As It Wants Nothing To Do With Crypto Projects. ...

Shiba Inu And BONE Becomes Top Trending Coins in Asia, USA, and Canada

Shiba Inu and Bone are trending worldwide. window.coinzilla_display = window.coinzilla_display || ; var c_display_preferences...

NOWNodes Adds Support for Shiba Inu Burn Portal Reward Token Ryoshi Vision (RYOSHI)

  The listing of RYOSHI will enable developers to build on Ryoshi Vision via NOWNode's platform. window.coinzilla_display =...

71,225 XRP Holders Now Stand With Ripple Against SEC, Deaton Says All XRP Investors Are Leaders Of XRPArmy

  The Amici attorney has commended XRP investors for their collaboration toward Ripple’s legal battle against the SEC.  ...

One Year After Burning Mechanism Launched, 2.5 Million Ethereum Worth $5B Burnt, Is ETH Becoming Deflationary?

  About 2.1% of Ethereum's circulating supply has been burned since the London hard fork. window.coinzilla_display = window.coinzilla_display...

Subscribe To Our Newsletter

Get Updated with All The latest Crypto News, Articles, Reviews, Analysis and much more. Delivered Every Monday.