The CABEI (Central American Bank for Economic Integration) has highlighted that remittance is one of the important aspects behind the BTC (Bitcoin) adoption policy that the country has announced recently. Reduced costs of remittance could be noteworthy in justifying the country’s stance of making Bitcoin a legal tender.
Reuters reported on Tuesday that the local development bank assumes other nations in Central America to put a close eye on the impact of Bitcoin over the remittance costs across El Salvador. Dante Mossi, the executive president of CABEI, while talking to Reuters, said that clear incentives could be acquired by the adjoining countries if they follow El Salvador in BTC adoption because a comprehensive reduction would be witnessed in the costs of market remittance.
He added that the BTC adoption policy of El Salvador is a remarkable experiment across the globe that may possibly bring about a huge financial integration in the country. Therefore, CABEI is assisting El Salvador in developing a technical structure regarding BTC adoption. Carlos Sanchez, the CABEI’s investment chief, described that the bank is much focused on providing possible assistance to the country to confirm its law-abidance in terms of money laundering spreading around the world. The reason, he added, is that El Salvador is attempting to incorporate BTC as a simultaneous currency. He further mentioned that the process had been navigated; however, it has not been fully explored.
International Monetary Fund has targeted the technical assistance of CABEI and rigorously criticized it. Certainly, it can be seen that Bitcoin is capable of driving momentous discussions regarding monetary policy, especially when it comes to the regional and national levels. It is apparent that such monetary-policy-centred debates may constantly occur till the financial establishment throughout the world remains hostile to Bitcoin. In June, Steve Hanke (an economist) voiced a warning that the complete economy of El Salvador might be destroyed after the adoption of BTC, while the ratings from Fitch also alarmed the country by proposing that there would be risks in the implementation of the BTC law of El Salvador.
The country, maintaining up to its track, seems to be progressing by moving along with its framework of Bitcoin adoption by making BTC a completely official and legal money type all around the country. In the earlier days of August, Nayib Bukele (the president of El Salvador) announced the policies for integrating up to 200 ATMs to make the two-way conversion of U.S.D and BTC convenient for the users.