{"id":10392,"date":"2021-08-03T02:54:39","date_gmt":"2021-08-03T02:54:39","guid":{"rendered":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-america-sees-benefits-in-adopting-bitcoin-as-legal-tender-in-el-salvador\/"},"modified":"2021-08-03T02:54:39","modified_gmt":"2021-08-03T02:54:39","slug":"bank-of-america-sees-benefits-in-adopting-bitcoin-as-legal-tender-in-el-salvador","status":"publish","type":"post","link":"https:\/\/www.buyucoin.com\/crypto-labs\/bank-of-america-sees-benefits-in-adopting-bitcoin-as-legal-tender-in-el-salvador\/","title":{"rendered":"Bank of America Sees Benefits in Adopting Bitcoin as Legal Tender in El Salvador"},"content":{"rendered":"

Bank of America has outlined some benefits to be had from adopting bitcoin as legal tender in El Salvador. <\/strong>The opportunities include low-cost remittances, financial digitization, more choices, and greater investments from foreign companies.<\/strong><\/p>\n

Bank of America Highlights Opportunities Bitcoin Brings to El Salvador as Legal Tender<\/h2>\n

Bank of America (BOA) outlined some potential benefits in El Salvador adopting bitcoin as legal tender in a report published last week.<\/p>\n

The analysts, including Latin American strategist Claudio Irigoyen, explained that \u201cThe market has been excessively pessimistic about it and is overlooking any argument in favor, even if those benefits are admittedly more uncertain.\u201d<\/p>\n

Firstly, the report details:<\/p>\n

Bitcoin could be used as an intermediary for cross-border transfer \u2026 Using bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels.<\/p>\n

The Bank of America analysts further noted that bitcoin\u2019s volatility could be reduced if the conversions between BTC<\/a> and dollars \u201chappen automatically.\u201d<\/p>\n

Financial intermediaries would receive less in remittance fees, leaving recipients with more disposable income. However, Bank of America cautioned, \u201cit is unclear how the bitcoin transaction fees would compare to traditional remittance channels.\u201d<\/p>\n

Secondly, the Bank of America report describes that \u201cfinancial digitization\u201d could be another benefit since \u201cmore than 70% of the adult population in El Salvador does not have a bank account.\u201d The analysts emphasized, \u201cdemocratizing access to electronic payments through bitcoin has a progressive touch.\u201d<\/p>\n

<\/p>\n

In addition, adopting bitcoin as legal tender is \u201cgiving more choice to consumers,\u201d the Bank of America analysts noted, elaborating:<\/p>\n

We disagree with the notion that it is coercive that businesses will be legally bound to accept bitcoin as form of payment as long as they have the proper technological infrastructure.<\/p>\n

They further explained that payments can automatically be converted to dollars using the government\u2019s electronic wallet, Chivo<\/a>.<\/p>\n

Lastly, the report said that bitcoin adoption could bring foreign direct investment (FDI) flows into El Salvador, such as from Strike, bitcoin miners, and ATM manufacturers. At least two crypto ATM companies have already announced plans to install cryptocurrency ATMs in El Salvador: Chainbytes<\/a> and Athena Bitcoin<\/a>.<\/p>\n

Despite seeing some benefits, Bank of America believes that adopting bitcoin as legal tender in El Salvador is negative overall, largely due to the cryptocurrency\u2019s high volatility. The analysts explained that letting people pay taxes with a highly volatile asset is particularly worrying, warning that it could lead to sharp falls in revenues if the price tumbles.<\/p>\n

What do you think about Bank of America\u2019s view on bitcoin as legal tender in El Salvador? Let us know in the comments section below.<\/strong><\/em><\/p>\n

Bitcoin News
\nFeatured, Bank of America, bank of america bitcoin, bank of america bitcoin legal tender, bank of america crypto, Bitcoin adoption, bitcoin legal tender, El Salvador, el salvador bitcoin, el salvador crypto<\/p>\n","protected":false},"excerpt":{"rendered":"

Bank of America has outlined some benefits to be had from adopting bitcoin as legal tender in El Salvador. The opportunities include low-cost remittances, financial digitization, more choices, and greater investments from foreign companies. Bank of America Highlights Opportunities Bitcoin Brings to El Salvador as Legal Tender Bank of America (BOA) outlined some potential benefits…<\/p>\n","protected":false},"author":0,"featured_media":10393,"comment_status":"","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[53,3],"tags":[],"class_list":["post-10392","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blockchain-news","category-coin-news"],"_links":{"self":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10392"}],"collection":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/comments?post=10392"}],"version-history":[{"count":0,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/posts\/10392\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media\/10393"}],"wp:attachment":[{"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/media?parent=10392"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/categories?post=10392"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyucoin.com\/crypto-labs\/wp-json\/wp\/v2\/tags?post=10392"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}