September 26, 2021

Bank of America considers El Salvador's Bitcoin strategy to be a winning one

Bank of America considers El Salvador's Bitcoin strategy to be a winning one

Bank of America (BofA) believes El Salvador can only benefit from Bitcoin legalization.

Analysts of the largest The country's financial institution said that El Salvador's decision to democratize access to bitcoin payments would help bring a number of benefits to the country's economy:

⁃ reduce the cost of cross-border transfers;

⁃ contribute to the digitization of the economy;

⁃ attract new consumers to non-cash payments;

⁃ attract large investments from cryptocurrency mining.

The expert report indicates that the grossDomestic Product (GDP) of El Salvador is supported by 24% of foreign exchange transfers. At the same time, commission costs make up the majority of this amount. And 70% of the adult population does not have access to banking services.

These problems will be solved by the introduction of crypto transactions, which will be carried out through the state-owned bitcoin wallet Chivo.

A month ago, El Salvador became the first country to legalize payments in the military-technical cooperation. The President's desire to introduce bitcoin into circulation has caused negative reviews from the International Monetary Fund (IMF).

However, analysts at JPMorgan Chase believe that El Salvador's bitcoin gambit will have a positive impact on both the country's economy and cryptocurrency adoption.

After El Salvador, several Latin American countries have hinted at their own cryptocurrency strategy.

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