El Salvador’s adoption of Bitcoin may change remittances in Central America

The Central American Bank for Economic Integration (CABEI) has identified remittances as an important aspect of Bitcoin in El Salvador (Bitcoin) Adoption policy.

According to a Reuters report on Tuesday, the regional development bank expect Other Central American countries pay close attention to the impact of Bitcoin on the cost of remittances in El Salvador.

In an interview with Reuters, CABEI CEO Dante Mossi said that if Bitcoin significantly reduces the cost of the remittance market, neighboring countries will be encouraged to follow the example of El Salvador.

CABEI executives described El Salvador’s Bitcoin adoption policy as an “experiment outside the world” that could promote greater financial inclusion in the country. Therefore, banks in the region are helping El Salvador create a technological framework to adopt Bitcoin.

According to Carlos Sanchez, head of investment at CABEI, banks in the region are keen to help El Salvador ensure compliance with global money laundering rules as the country tries to use Bitcoin as a parallel currency. Sanchez described the process as similar to “unexplored” waters.

related: Bank of America outlines 4 potential benefits of El Salvador’s Bitcoin strategy

CABEI’s technical assistance is facing Opposition and criticism of the International Monetary FundIn fact, this move can be seen as a sign that Bitcoin is capable of promoting major monetary policy discussions, at least at the national and regional levels, even if global financial institutions still oppose Bitcoin.

In June, economist Steve Hanke warned that Bitcoin could destroy El Salvador’s economy And Fitch Ratings also issued a warning that the country’s Bitcoin laws may pose risks to local insurance companies.

As far as El Salvador is concerned, it appears to be advancing its plan to adopt Bitcoin as a fully recognized legal form of currency in the country. In early August, President Nayib Bukele announced plans to install 200 ATM machines, which can easily convert bitcoins into U.S. dollars.

The country’s central bank has also Published draft regulations Explain in detail how the bank handles Bitcoin.