El Salvador’s Adoption of Bitcoin Will Change Central America’s Remittances

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The reduction in the cost of transfers seems to be the main reason for the adoption of Bitcoin by El Salvador. CABEI has recognized that remittances are an essential part of El Salvador’s BTC adoption policy.

Central American countries could adopt Bitcoin after El Salvador

Recently it was reported that the expectations of the RDB (Regional Development Bank) are that other Central American countries pay close attention to the effect of Bitcoin on El Salvador’s transfer costs.

In a statement, CABEI Executive Chairman Dante Mossi said all other countries surrounding El Salvador are motivated to follow El Salvador’s steps as BTC offers a noticeable reduction in transfer costs to the market.

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According to the director of the Central American Bank for Economic Integration. El Salvador’s Bitcoin adoption policy is a first-rate experiment that can promote greater financial inclusion in El Salvador. As a result, the regional bank will help the country set up a technical structure for the adoption of Bitcoin.

BTC has been following a downtrend after falling from the $50K zone | Source: BTCUSD on TradingView

As Carlos Sanchez, the chief investment officer of CABEI, the regional development bank, said is eager to help El Salvador. Sanchez will help establish compliance with global money laundering regulations as the country tries to use Bitcoin as a similar currency.

Sanchez described the process as being similar to that of unvisited waters.

El Salvador remains dedicated to a decentralized future

CABEI’s technical assistance does not take into account the criticisms and criticisms emanating from the International Monetary Fund.

This strategy may be a sign of Bitcoin’s ability to advance remarkable monetary policy debates. This is even if the global financial community maintains its anti-Bitcoin stance.

Steve Hanke, an economist, warned in June that El Salvador’s economy could suffer because of Bitcoin. Additionally, Fitch Rating also states that the nation’s Bitcoin laws are hurting local insurers.

Despite these warnings, El Salvador continues to move forward with its plans to adopt BTC. The goal is to fully recognize Bitcoin as the legal tender of their country.

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In early August, President Nayib Bukele announced that the nation would not back down on adopting BTC. He said there are plans to set up around 200 ATMs that will make it easier to convert Bitcoin to US dollars.

In addition, the central bank of El Salvador has also released draft regulations. These detail how banks can work effectively with BTC.

Featured image from Pixabay, chart from TradingView.com


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