El Salvador's Leading Bank Bancoagrcola Partners With Flexa for Bitcoin Payments

Kavya  |  Sep 10, 2021

Following its collaboration with digital payments gateway Flexa, El Salvador's leading bank, Bancoagrcola is prepared to increase the country's Bitcoin adoption policy.

El Salvador’s Leading Bank, Bancoagrcola Collaborates With Flexa

Flexa said on Thursday that Bancoagrcola has signed a collaboration with the crypto payment network to facilitate Bitcoin (BTC) transactions for the bank's customers, including retail and merchant clients.

Customers of Bancoagrcola may now make credit card payments in US dollars using Flexa or other Lightning Network-enabled wallets like Chivo and Éclair as part of the collaboration. 

According to the announcement, these payments would not be subject to any additional costs and will cover a variety of items such as loans and merchant products.

Flexa has implemented Lightning payment functionality, with the innovation-focused at merchant clients.

The collaboration between Bancoagrcola and Flexa comes on the heels of Bitcoin becoming legal money in El Salvador.

Reports of El Salvadorian shops taking Bitcoin are becoming more prevalent on social media, including McDonald's locations accepting BTC as payment.

Moneygram And Western Union Might Lose Up To $400 Million Every Year

According to the country's president, if El Salvador's Bitcoin adoption strategy is effective, global money transfer companies such as MoneyGram and Western Union may lose up to $400 million each year.

Indeed, remittances make for a large percentage of El Salvador's GDP 23% in 2020 alone with 70% of the population allegedly getting money from abroad.

The Central American Bank for Economic Integration or CABEI indicated in August that the use of Bitcoin as legal money may have a favorable influence on regional remittances. 

At the time, the CABEI stated that it would assist the government in developing a technical framework for adopting BTC as well as in complying with international anti-money laundering requirements.

El Salvador's Bitcoin Law is not without controversy, with the majority of the country apparently opposing the move. 

The International Monetary Fund and other global financial institutions have likewise advised against using Bitcoin as a national currency.

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