As September 7th approaches, all the participants raise their heads. The Central American Bank For Economic Integration sat down with Reuters to discuss El Salvador’s Bitcoin Law. Carlos Sanchez, Central American Bank For Economic Integration’s head of investments, is optimistic about the organization’s assistance. They’ll help El Salvador “navigate waters that have yet to be explored.“
Related Reading | Bank Of America Sees Four Upsides In El Salvador’s Bitcoin Adoption
As you probably know, the World Bank turned down El Salvador’s request for help with the implementation of Bitcoin as legal tender “While the government did approach us for assistance on bitcoin, this is not something the World Bank can support given the environmental and transparency shortcomings,” a spokesperson told the media. Well, this regional development bank ignored their bogus claims and jumped in the ring for the Central American country.
The Central American Bank For Economic Integration Knows About Strict Protocols
As Bitcoinist timely informed, the Central American Bank For Economic Integration “seems to be playing the intermediary between El Salvador’s government and the US Department of Treasury.” In related matters, Carlos Sanchez flashed one of the project’s most bullish signs. According to Reuters, he claimed:
“The bank’s technical assistance is focused on helping El Salvador design a legal framework for the adoption of bitcoin and to make sure strict international money laundering protocols are adhered to.”
This is especially important since it’s one of the only points of contention with which FUDsters make sense while criticizing El Salvador’s Bitcoin bet. Recently, notorious fiat-promoter Steve Hanke claimed:
“I identified 27 FATF regulations related to virtual‐asset transactions that will be nearly impossible for Salvadoran banks, businesses, and their customers to comply with under the new law.”
It’s good to know El Salvador and the Central American Bank For Economic Integration have aces down their sleeves.
BTC price chart on Gemini | Source: BTC/USD on TradingView.com
A Drop In Remittances’ Fees Is Key To The Whole Operation
Reuters also interviewed Dante Mossi, executive president of the Central American Bank for Economic Integration. He thinks that “Everyone is watching if it goes well for El Salvador and if, for example, the cost of remittances drops substantially … other countries will probably seek that advantage and adopt it.” Well, they better prepare themselves. The drop is going to be tremendous. Reuters claims:
“Under 1% of the volume of global crossborder remittances are currently in crypto, according to Autonomous Research, but in the future crypto is expected to account for a larger slice of the more than $500 billion in for annual global remittances.”
However, Bitcoinist recently got numbers from Nigeria. “The country reportedly moved $24.87M in Bitcoin just in the first three weeks of August. Remittances through traditional channels fell by $6B.” And, needless to say, Bitcoin isn’t legal tender in Nigeria.
The Central American Bank for Economic Integration seems to be one of the most bullish institutions in this whole scenario. Mossi thinks that “Guatemala, Honduras and El Salvador are the countries that would have the most to gain if the adoption of bitcoin lowered the cost of sending remittances.” All countries in his organization’s area of influence.
No wonder Mossi considers El Salvador’s Bitcoin Law as an “out of this world experiment.“Featured Image by Edge2Edge Media on Unsplash - Charts by TradingView
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