Companies like MoneyGram, Western Union, and other firms have been eating away 1.5% of the GDP of El Salvador on remittance fees per year, and there are questions regarding will this situation change with Bitcoin. Willy Woo has recently reminded the crypto community about the huge amount of profits these companies have been making.
In accordance with a CNBC article shared recently, MoneyGram and Western Union remittance giants have been making a lot of profits on fees on money sent to El Salvador by its citizens working in other countries.
As revealed in the data shared, people residing in the region got around $6 billion worth of remittances last year, which accounted for a total of 23% of the GDP of El Salvador.
According to the President of El Salvador, Nayib Bukele, Bitcoin is going to help residents to avoid such huge fees for remittance coming from their relatives abroad.
These payments are received by over 70% of the total population of El Salvador.
In addition to this, it should be noted that Willy Woo laid an emphasis on the average sum of cash remitted to the country per month, which is $195.
At present, the government of El Salvador is doing its best to get the local residents to register with Chivo wallet, which can be used by its users to receive Bitcoin and use it to pay for goods and services.
The chief investor at Arcane Assets, Eric Wall, believes that the Bitcoin initiative of El Salvador is a centralized and coercive show as many citizens have been marching in protests against the adoption of Bitcoin as legal tender.
Moreover, the government has promised to punish those retailers that refuse to use Bitcoin as a legal local medium of exchange.