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June 26, 2022
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The success of BTC in El Salvador could mean legalization in other countries

El Salvador adopting Bitcoin (BTC) as a parallel currency to the US dollar in September could substantially reduce the costs of remittances, which are a vital source of income for millions.

According to the region’s development bank, other Central American countries are zealously waiting to see if that happens, because if it does, they themselves may soon be adopting Bitcoin.

Challenge

Dante Mossi, Executive President of the Central American Bank for Economic Integration (CABEI), he said told Reuters that “everyone is looking to see if El Salvador is doing well and if, for example, the cost of remittances drops substantially … other countries are likely to look to that advantage and embrace it. ”

El Salvador has a population of 6.5 million, with more than 2 million living abroad and sending money to their families.

As insulted by the president Nayib Bukele, what approved Legislation in Parliament in June , thanks to a majority of his Nuevas Ideas party in the assembly, Bitcoin will facilitate the payment of remittances from Salvadorans living abroad and positively impact the economy of the country that needs help.

With more than 20% of the country’s gross domestic product (GDP) made up of remittances, adopting Bitcoin could dramatically change the game in favor of Salvadorans

Important demonstration of support

According to Reuters, Mossi called legal tender adoption an “out-of-this-world experiment” with the aim of promoting financial inclusion in a region where many do not have access to bank accounts and rely heavily on money sent by relatives living in the United States.

Mossi stressed that CABEI had a “fiduciary obligation” to help El Salvador in its aid application, as the regional development bank is providing technical assistance to the country in implementing the cryptocurrency, while the world Bank refused their support.

“Guatemala, Honduras and El Salvador are the countries that stand to gain the most if adopting Bitcoin reduced the cost of sending remittances,” Mossi told Reuters, noting that the Central American nations that receive the most remittances are likely to follow. the example of Bukele.

Source: CryptoSlate

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