Bank of America sees four advantages in promoting bitcoin in El Salvador

Bank of America said it saw how Salvadoran bitcoin could help the island nation.

President Bukele Agrees With Bank Of America
Central American country’s Salvador Naib Bukele tweeted screenshots of Bank of America’s Economic Outlook report (BofA) yesterday. While explaining why the bank is optimistic about El Salvador’s economic prospects, the document also highlighted the advantages bitcoin’s acceptance as legal money could offer the country.

The article, published on July 26, discusses El Salvador’s overall economic outlook, and the section in question focuses on remittances, digitization, and entrepreneurship.

BofA acknowledges how Bitcoin can improve cross-border remittance output, which accounts for a significant 24 percent of el Salvador’s gross domestic product (GDP). According to the bank for International Settlements, the average cost of such a transfer is more than 10%, which can be lower in bitcoins.

Here are some of the chances @BankofAmerica sees in accepting # bitcoin in El Salvador: pic.twitter.com/5E63FM4TAF

– Nayib Bukele 1 (@nayibbukele), August 1, 2021

“The use of bitcoin for money transfers can potentially reduce transaction costs compared to traditional money transfer channels,” BofA said. “If the use of Bitcoin really lowers transaction costs, for every dollar that the El Salvador Diaspora sends home, buyers can get most of that dollar by increasing their disposable income and reducing the proportion of money transfers lost by financial intermediaries.”

According to the article, another beneficial effect that bitcoin can have on el Salvadorans is its ability to bank without banks. Since more than 70% of El Salvador’s adult population does not have access to traditional banking services, bitcoin has the potential to democratize access to electronic payments – a ” progressive touch.”

Moreover, according to BofA, the legal tender approval of Bitcoin in El Salvador offers more opportunities for the country’s citizen

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