Many financial structures reacted extremely negatively to the decision of the El Salvadorian authorities to legalize bitcoin. The negative opinion was presented by the IMF and the World Bank.
By contrast, the giant Bank of America believes the country could benefit from such a move. The bank's analysts outlined their position in the report. It says that accepting bitcoin will make money transfers easier.
In addition, the authorities will be able to make the country attractive for crypto companies.
Trending: Salvadorans are against buying bitcoins at the expense of the budget
The authors of the report emphasized: "Using bitcoin can reduce transaction costs compared to traditional channels for sending money. The idea is that bitcoin can be used as an intermediary tool for cross-border payments. The sender converts dollars to bitcoin, and then the recipient of the funds converts it back to dollars."
Note that many residents of El Salvador reacted negatively to the populist bill of President Nayib Bukele.
There were even protests in the capital of the state. However, the public was unable to force the government of El Salvador to abandon the bitcoin legalization law.