Synopsis:
It is hard to see a bank being downright honest and unbiased in its views when it comes to bitcoin or any other cryptocurrencies. Whilst the traditional finance sector is bickering with conflicting views on the benefits of cryptocurrencies with most of them leaning towards clamping down on Bitcoin and its ilk.
"More than 70% of the adult population of El Salvador does not have a bank account," reads the latest Global Research report from Bank of America. "For that reason, democratizing access to electronic payments, through Bitcoin, has a progressive touch."
The people of El Salvador deserve a break from the financial exclusion they have been in for a long time. Traditional banks could not and do not want to onboard these people simply because it does not makes pecuniary sense.
In a report published last week, analysts at the bank said El Salvador's decision to recognize BTC as legal tender could streamline remittances, promote financial digitization, provide consumers with greater choice and open up the country to American firms and digital currency miners.
"..... open up the country to American firms......" Ahh, it makes more sense now, There is money in it for American firms too!
The bank noted that remittances account for a staggering 24% of El Salvador's gross domestic product, but a sizable chunk of that goes toward transaction fees.
This is just daylight robbery. These are poor people, who go overseas to make a little money so that they can send their meagre earnings back home to their loved ones. All this while, the banking system as it exist today did not find it unconscionable to charge exorbitant transaction fees taking a large chunk of their hard earned earnings.
Since El Salvador recognized Bitcoin as legal tender, several other Latin American nations have hinted at pursuing a cryptocurrency strategy of their own. However, until now, no other country has followed in El Salvador's footsteps.
Well it takes time for countries to make such a decision. Countries that heavily rely on foreign remittances, like the Philippines and Bangladesh are the likely candidate for this transition.
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