• Bank of America Describes the Key Advantages of Bitcoin Adoption in El Salvador

  • In an unexpected show of support, Bank of America, one of the largest banking organizations in the United States, identified some key potential that Bitcoin can provide to El Salvador.

    According to the bank, the introduction of the world’s largest cryptocurrency may potentially cut the cost of remittances, which account for about a quarter of the tropical country’s GDP. As a result, Salvadorans’ disposable income could increase significantly.

    Another advantage of Bitcoin adoption is the ability to bank the unbanked. Approximately 70% of El Salvadorans do not have access to a bank account.

    Finally, El Salvador might attract foreign direct investment (FDI) by competing with Iceland as a major Bitcoin mining hub.

    In March, Bank of America issued damning research on cryptocurrencies, claiming that the only feasible use case for Bitcoin is price speculation.

    El Salvador’s divisive Bitcoin experiment

    President Nayib Bukele decided to make his country into a cryptocurrency utopia after abandoning its own currency two decades ago.

    After El Salvador’s legislature voted to accept Bitcoin as legal tender in late June, his Bitcoin bill will go into effect in September.

    While Bukele quickly became a bitcoin celebrity, his cryptocurrency drive drew a lot of criticism from both observers and Salvadorans.

    The International Monetary Fund (IMF) has warned of a plethora of hazards associated with cryptocurrency growth. Meanwhile, Moody’s reduced the country’s rating, citing Bitcoin as a factor in the country’s talks with the IMF.

    According to a recent survey, 82.5 percent of residents in El Salvador are not interested in receiving Bitcoin remittances.

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