(Cryptoslate) The Bank of America is supporting El Salvador’s Bitcoin bill that aims to make the digital currency a legal tender by noting key benefits in the move.
BofA says that with 70% of El Salvador’s citizens lacking access to a bank account or financial services, the use of bitcoin reduces the challenge and enhances financial inclusion.
The US bank says Bitcoin will lower the cost of remittances, which are currently one-fifth of El Salvador’s GDP.
There are further benefits to the environment as El Salvador plans to harness geothermal energy to mine Bitcoin, leading to clean, cost-effective, and renewable energy.
BofA says the use of Bitcoin by El Salvador will attract foreign investments as investors bet on the growth of the ecosystem.
The bank also cites “financial digitalization” as key to the adoption of Bitcoin, enhancing access to electronic payments.
El Salvador’s Bitcoin move comes amid criticisms from several quarters, including the International Monetary Fund, against giving the digital currency a legal tender status.
BTCUSD is down -1.77%.
