El Salvador’s decision to adopt Bitcoin as a legal tender has won it friends amongst the crypto community and the latest to hail this decision is an analyst from the Bank of America. This was revealed via a screenshot posted on the official profile of the country on Twitter.
According to the author, Bitcoin could help El Salvador’s overall economic viewpoint and highlight the opportunities available to the flagship asset in remittances, digitization, and business operations.
Per the report, a huge part of the country’s GDP is gotten through remittances which stands at 24 percent of the overall GDP. Bitcoin’s ability to help reduce cost could play a vital role in helping the country cut spending and save more if it is used as a bridge for the country’s international transactions.
Another way the adoption of Bitcoin could help the Central American country is by promoting financial and economic inclusiveness. The report noted that over 70 percent of the citizens of the country do not have a bank account, however, with the adoption of Bitcoin, the unbanked would easily become banked and become a part of the larger financial system.
The author continued that the adoption of the leading crypto asset, in the long run, would help to boost the economy of the country as payment platforms, Bitcoin miners, BTC ATM manufacturers plus other crypto entrepreneurs would find their way into the country’s economy.
Recall that the International Monetary Fund (IMF) has criticized the country’s decision saying the adoption of the digital asset by El Salvador could come with macroeconomic and legal issues to contend with. However, President Bukele remains undeterred in his pursuit of making the use of BTC viable in the country.