{"id":47049,"date":"2021-08-02T09:52:29","date_gmt":"2021-08-02T06:52:29","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=47049"},"modified":"2025-09-01T19:28:57","modified_gmt":"2025-09-01T16:28:57","slug":"bank-of-america-flags-benefits-of-el-salvadors-bitcoin-strategy","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/bank-of-america-flags-benefits-of-el-salvadors-bitcoin-strategy\/","title":{"rendered":"Bank of America Flags Benefits of El Salvador&#8217;s Bitcoin Strategy"},"content":{"rendered":"<p>Analysts at Bank of America (BofA), one of the largest financial institutions in the United States, say that El Salvador could reap a number of benefits from adopting Bitcoin.<\/p>\n<blockquote class=\\\"twitter-tweet\\\" data-lang=\\\"en\\\">\n<p lang=\\\"es\\\" dir=\\\"ltr\\\"><a href=\\\"https:\/\/twitter.com\/hashtag\/ElSalvador?src=hash&#038;ref_src=twsrc%5Etfw\\\">#ElSalvador<\/a> The President <a href=\\\"https:\/\/twitter.com\/nayibbukele?ref_src=twsrc%5Etfw\\\">@nayibbukele<\/a> shares this morning some of the opportunities that <a href=\\\"https:\/\/twitter.com\/hashtag\/BankofAmerica?src=hash&#038;ref_src=twsrc%5Etfw\\\">@BankofAmerica<\/a> sees in El Salvador, after the adoption of <a href=\\\"https:\/\/twitter.com\/hashtag\/Bitcoin?src=hash&#038;ref_src=twsrc%5Etfw\\\">#Bitcoin<\/a> <a href=\\\"https:\/\/t.co\/08D1RuGFYI\\\">pic.twitter.com\/08D1RuGFYI<\/a><\/p>\n<p>\u2014 Diario El Salvador (@elsalvador) <a href=\\\"https:\/\/twitter.com\/elsalvador\/status\/1421860784217509889?ref_src=twsrc%5Etfw\\\">August 1, 2021<\/a><\/p><\/blockquote>\n<p> <script async=\\\"\\\" src=\\\"https:\/\/platform.twitter.com\/widgets.js\\\" charset=\\\"utf-8\\\"><\/script><\/p>\n<p>In the bank&#8217;s report analysts noted that recognizing cryptocurrency as a legal payment method could potentially reduce the cost of remittances, which account for nearly a quarter of <span data-descr=\\\"gross domestic product\\\" class=\\\"old_tooltip\\\">GDP<\/span> of El Salvador. This could positively affect residents&#8217; disposable income.<\/p>\n<p>Another advantage of the Bitcoin rollout, the analysts said, is the democratisation of financial services, as around 70% of the country&#8217;s adult population does not have a bank account.<\/p>\n<p>El Salvador could also attract streams of foreign direct investment, becoming a major cryptocurrency mining hub similar to Iceland, according to BofA.<\/p>\n<p>In June, the Legislative Assembly of El Salvador passed a law recognizing Bitcoin <a href=\"https:\/\/u1f987.com\/en\/news\/el-salvador-passes-bill-recognizing-bitcoin-as-legal-tender\">as an official payment method in the country<\/a>. It will take effect on 7 September 2021.<\/p>\n<p>IMF spokesman Jerry Rice said that the initiative <a href=\"https:\/\/u1f987.com\/en\/news\/imf-sees-risks-in-salvadoran-bitcoin-payments-legalisation\">could entail a number of risks and regulatory issues<\/a>. <\/p>\n<p>In July the IMF <a href=\"https:\/\/u1f987.com\/en\/news\/imf-warns-of-the-consequences-of-bitcoin-legalization\">warned about the consequences of Bitcoin&#8217;s legalization<\/a>. The organisation says that countries adopting digital assets as their national currencies or legal tender risk macroeconomic stability.<\/p>\n<p>Moody\u2019s <a href=\"https:\/\/u1f987.com\/en\/news\/moodys-downgrades-el-salvadors-rating-amid-bitcoin-legalization\">downgraded El Salvador&#8217;s long-term foreign-currency credit rating<\/a> to Caa1 with a negative outlook. One of the reasons for this was the legalization of the cryptocurrency.<\/p>\n<p>As previously noted, Professor Steve Hanke, a professor of applied economics at Johns Hopkins University, argued that Bitcoin adoption <a href=\"https:\/\/u1f987.com\/en\/news\/economist-switch-to-bitcoin-could-derail-el-salvadors-economy\">could completely destroy El Salvador&#8217;s economy<\/a>, as it would lead to an outflow of U.S. dollars, which are its official currency.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Analysts at Bank of America (BofA), one of the largest financial institutions in the United States, say that El Salvador could reap a number of benefits from adopting Bitcoin.<\/p>\n","protected":false},"author":1,"featured_media":47050,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[2027,1278,1138],"class_list":["post-47049","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bank-of-america","tag-el-salvador","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"14","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/47049","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=47049"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/47049\/revisions"}],"predecessor-version":[{"id":47051,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/47049\/revisions\/47051"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/47050"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=47049"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=47049"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=47049"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}