Bank of America states that El Salvador’s use of Bitcoin for remittances could potentially reduce transaction costs compared to traditional channels.
BTC USD down -3.09%
As per Bank of America, approving Bitcoin as legal tender has various benefits, including that 70% of citizens in El Salvador who do not have access to bank accounts will use Bitcoin for their financial services.
Bitcoin could reduce the cost of remittances, which accounts for around one-fifth of El Salvador’s gross domestic product.
The digital currency could also spur foreign investments into cost-effective, clean, and renewable energy centers.
Adopting Bitcoin also further attracts foreign direct investments into the nation as foreign players invest in the growth of the ecosystem.
The use of Bitcoin could help El Salvador to initiate financial digitalization and offer access to electronic payments with “a progressive touch.”