The Central American Bank for Economic Integration (CABEI) has come forward to help El Salvador with the technicalities of Bitcoin implementation as a legal tender. Dante Mossi, the chief of CABEI said they will be select a first-rate technical team that would work with the Salvadorian government to implement the changes. Mossi said,
The signal that I want to leave you today is that the CABEI is accompanying El Salvador in this new and innovative policy of adopting the cryptocurrency called Bitcoin for legal use “
El Salvador became the first country in the world to make Bitcoin a legal tender. The country’s president Nayib Bukele made it clear that the BTC adoption is not a gimmick, despite them being a very small country in Central America. The President has also appealed for technical help from countries and banking systems to implement necessary changes and CABEI has finally come to their rescue.
El Salvador will buy $150 million in Bitcoin from its treasury and promote the use of BTC in the country among merchants and vendors. Bukele revealed that the decision was well articulated as more than 70% of the population in the country do not have banking facilities, but more than 50% enjoy internet facilities. Bitcoin could help in extending financial services to the deprived.
El Salvador Inspires Other Small Countries to Become a Bitcoin Nation
Salvador’s Bitcoin adoption didn’t go well with International Monetary Fund (IMF) who said making BTC a legal tender could raise geopolitical and banking concerns. IMF’s comments came just hours before a scheduled meeting with President Bukele for $1 billion financial aid.
Along with IMF, JP Morgan also raised concerns over Salvador’s decision despite comparing the move to the early 2000s polarization. The small Central American country also inspired many other small states which are financially challenged to move to Bitcoin.