Bank of America Sees Benefits of Accepting BTC as a Means of Payment in El Salvador – Bits Media

The second largest bank in the United States Bank of America (Good) sees benefits in El Salvador's initiative to adopt bitcoin as a quality legal tender.

According to Diario El Salvador's Twitter post citing BoA report, one of the largest banking institutions in the USA, Bank analysts recognize opportunities, which Bitcoin can offer Salvador as a legal means of payment.

Boa claims, that the introduction of the world's largest cryptocurrency in the economy of Salvador can potentially reduce the cost of money transfers, which make up almost a quarter of the country's gross domestic product. In turn, This could seriously increase the real income of Salvador..

Providing financial services of people, not having access to banking services is another advantage of accepting bitcoin in Salvador. According to the latest data, approximately 70% Salvador citizens are not able to open a bank account.

According to the analysts of the bank, Salvador can attract streams of direct foreign investment, Having become a large center of mining BTC, by analogy with Iceland. According to another BOA report, State cryptocurrencies can form a “much more effective payment system, than cash ", as well as reduce the popularity of stablecoins.

In June, President of Salvadora Nayib Buyle recognized Bitcoin as a legal payment vehicle in the country. However, the World Bank, IMF and other major organizations critically reacted to this step. So, The World Bank refused Salvador to integrate bitcoin into the financial system.

According to the recent JPMorgan report, The use of bitcoin in the economy of Salvador is faced with obstacles, which indicates possible "restrictions" of the use of a cryptoactive as a payment means.

At the same time, the rapid adoption of the law, recognizing bitcoin as legal tender in El Salvador, was poorly received by some citizens. In July, protests against bitcoin were held in the country.