The Bank of America has voiced its support for El Salvador’s plans to adopt Bitcoin as legal tender in September even amid public opposition, CryptoSlate reported.
- The BoA said the use of the digital token could potentially cut down transaction costs versus traditional remittances. This would benefit Salvadorans who send funds home by increasing the portion of funds received and reduce the proportion of funds lost to intermediaries.
- The majority of El Salvador citizens are unbanked, and Bitcoin could ease the difficulties in opening and operating bank accounts. This would also boost disposable income with lower transaction fees.
- El Salvador’s plans to power Bitcoin mines with geothermal energy from its volcanoes could attract foreign direct investments, given the cost-effective, clean, and renewable energy centers.
Plans to accept Bitcoin as legal tender have been met with opposition. This includes the International Monetary Fund, which said making cryptos legal tender could drive volatility and instability in fiat currencies.
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