El Salvador Government Admits that Banking System can Coexist with Bitcoin

A few months ago, the President of El Salvador Nayib Bukele claimed that the country can benefit from adopting Bitcoin as a legal tender. Within the span of a few weeks, the legislators voted with unanimity on the bill and the President signed on the bill to make Bitcoin the official new legal tender. Since that time the world has had its eyes on the Central American country to witness that how its economy is affected by this change.

Conventionally, the central banking organizations have continued to keep their distance from the cryptocurrency market and treat it like a threat. Recently, President Biden has passed the Infrastructure Bill that seeks to tax the cryptocurrency investors and possibly the technical stakeholders. However, during a recent event, the banking sector agreed that the banking system can exist parallel to the firstborn cryptocurrency.

Banking Sector can Benefit from Bitcoin

The CEO of the biggest digital payment services provider in the region SERFINSA claimed that the banking sector can draw benefits from Bitcoin trading. CEO Leandro Guini believes that both the Bitcoin industry and the banking units can learn to create a financial infrastructure in the region that is mutually beneficial.

He further added that starting Bitcoin trading in the region on a massive scale has created a unique opportunity. Guini also added that SERFINSA wants to sign a deal with the government for assisting in the infrastructure development of the Bitcoin-related projects like upgrading the Chivo wallet etc.

The LaBitConf 2021 was attended by many important figures from the banking sector. Luis Rodrguez, the head of the Central American Bank of Economic Integration was one of the attendees. He remarked that the addition of Bitcoin in the economy of a Central American nation has provided a lot of information and learning opportunities for the banking sector.

Another participant, Francisco Montenegro representing the Open Bank Project claimed that the country needs to learn to flatten the learning curve while the banking sector is planning to screen data from a sector that has been established throughout the last decade. He also thinks that the blockchain systems should be regulated by the governments of the respective regions to prevent Money laundering and other fintech-related crimes like tax evasion.

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