Bank of America Praised El Salvador's Bitcoin Policy

Bank of America praised El Salvador's Bitcoin policy. El Salvador had made Bitcoin official.

Bank of America, one of the leading banking institutions in the USA, summarized the benefits of El Salvador's making Bitcoin official currency in its recent research report. In the report, it was underlined that the legal currency of Bitcoin in the country will create opportunities in the fields of remittances, financial digitalization, and doing business with US companies. It was pointed out that using Bitcoin in remittances could potentially reduce transaction costs over traditional methods. In addition, it was stated that the amount of money transfers made to El Salvador constitutes an important part of the country's gross domestic product, such as 24 percent, and the cost of these transactions corresponds to 2.4 percent of GDP. According to Bank of America, disposable income will increase as transaction costs decrease. The bank says another positive outcome for El Salvador’s Bitcoin decision will be financial digitization. Here, attention was drawn to the fact that more than 70 percent of the adult population does not have a bank account.

El Salvador May Attract Foreign Investors

According to the report, adopting Bitcoin as fiat currency will pave the way for more choices for consumers and more business with American companies. It was stated that the adoption of Bitcoin could provide direct foreign capital inflow, and investment from Bitcoin miners and ATM companies could come.

Country May Also Attract Bitcoin Miners

President Nayib Bukele has stated that state-owned geothermal energy company LaGeo can generate clean energy from volcanoes for Bitcoin miners. Giving the example of Iceland, Bank of America emphasized that this country has become one of the important regions in the Bitcoin mining industry as it is a country rich in geothermal energy.