Bank Of America Outlines 5 Benefits Of Bitcoin For El Salvador's Economy - Kakiforex.com - Financial Market Media No. 1 in the World Bank Of America Outlines 5 Benefits Of Bitcoin For El Salvador's Economy Bank Of America Outlines 5 Benefits Of Bitcoin For El Salvador's Economy
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August 3, 2021

Bank Of America Outlines 5 Benefits Of Bitcoin For El Salvador's Economy

 The adoption of Bitcoin (BTC) in El Salvador as proposed by its president, Nayib Bukele provoked various public reactions.


The World Bank and the International Monetary Fund (IMF) are among the organizations that strongly oppose Bukele's decision because the use of BTC is seen as non-transparent and will cause macroeconomic, financial and legal problems.


Not enough of that, economist Steve Hanke claims the BTC will bring down El Salvador’s economy.



In contrast to the view of Bank of America, which fully supports Bukele's efforts with 5 benefits of using BTC as the national currency:


70% of citizens do not have bank accounts and financial services and the use of Bitcoin will solve this issue especially in the opening and operation of bank accounts.

Bitcoin is able to reduce the cost of remittances which accounts for 1/5 of El Salvador's gross domestic product (GDP). This means that the people can enjoy higher disposable income.

Crypto mining using geothermal energy is not only economical, clean and renewable, but is also capable of attracting foreign investment into controversial activities.

The adoption of Bitcoin further expands the attraction of foreign direct investment (FDI) into the country.

The adoption of Bitcoin also drives financial digitalization and at the same time provides access to electronic payments.

However, the people of El Salvador, including the delegation, have condemned Bukele's decision in a protest that took place last July. The average wants the Bitcoin Law dropped and rejects the idea of ​​using Bitcoin as a national currency.