Bank of America outlines 4 potential benefits of El Salvador’s Bitcoin strategy

Bank of America is one of the largest financial institutions in the United States by total assets. The bank believes that El Salvador may gain a lot of benefits through its recent Bitcoin strategy.

In a report released last week, the bank’s analysts stated that El Salvador’s decision to recognize Bitcoin as legal tender could simplify remittances, promote financial digitization, provide consumers with more choices, and provide U.S. companies and digital currency miners with more choices. Open the country.

The bank pointed out that remittances accounted for as much as 24% of El Salvador’s GDP, but a considerable part of it was used to pay transaction costs.

According to a picture provided by the state-backed “Diario El Salvador”, the report states: “ Compared with traditional remittance channels, using Bitcoin for remittance may reduce transaction costs. Our idea is that Bitcoin can be used as a cross-border The intermediary of international transfers, so that U.S. dollars can be exchanged into Bitcoin by the sender, and then exchanged into U.S. dollars by the receiver in the country. “

In June of this year, El Salvador became the first country to accept Bitcoin as legal tender, marking an important milestone in the development of digital currency from obscurity to mainstream acceptance. The decision to incorporate Bitcoin into the country’s financial system has been criticized by the International Monetary Fund and the United Nations Economic Commission for Latin America and the Caribbean. At the same time, JPMorgan Chase believes that El Salvador’s Bitcoin initiative may put additional pressure on the network’s already limited ability as a medium of exchange.

Survey data shows that half of Salvadorans are skeptical of using Bitcoin as legal tender. Those who choose to use BTC for transactions can use the Bitcoin wallet Chivo supported by the Salvadoran government, as well as many other options.

Since El Salvador recognized Bitcoin as legal tender, several other Latin American countries have hinted that they will pursue their own cryptocurrency strategy. However, so far, no other country has followed El Salvador.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bank-of-america-outlines-4-potential-benefits-of-el-salvadors-bitcoin-strategy/
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