50 cryptomats have been installed in American stores to transfer money to El Salvador. This was announced by the country’s President Nayib Bukele on Twitter. With the help of the devices, Salvadorans located in the United States will be able to transfer money to their homeland without commission.
About 70 percent of El Salvador’s population rely on cross-border transfers and payments. In 2020, six billion dollars were sent to the country in remittances. According to CNBC estimates, the legalization of bitcoin will deprive Western Union and MoneyGram payment systems of up to $ 400 million a year, which they received for commissions between transfers.
In early June, El Salvador became the first country in the world to recognize bitcoin as a legal tender. The country’s authorities purchased bitcoins for almost $ 26 million, and are going to buy even more in the future. In early September, protests against the use of cryptocurrency took place outside the Supreme Court in San Salvador. Opponents of the legalization of bitcoin fear the growth of financial instability and the number of illegal cryptocurrency transactions.