2 PAYMENT METHOD PROFILES: STABLECOIN
Case Study
Case Study: El Salvador El Salvador became the first country to adopt Bitcoin as legal tender in September 2021 with the hopes of promoting financial inclusion, increasing remittances efficiency and boosting private investments. Bitcoin acceptance was mandatory for business to accept unless technology needed to process the transactions was not accessible. 787 Just a couple years later, there was still hesitancy to use Bitcoin with only 20% Salvadorans using the cryptocurrency. 788 The appeal of cryptocurrency for cross border transactions like remittances is the avoidance of fees; however, use of crypto wallets made up only about 1% of their $3.39 billion in remittances received. 789 In December 2024, the International Monetary Fund and the El Salvadoran government made an agreement under the Extended Fund Facility (EFF) which provides financial assistance to countries that need help implementing structural reforms. 790 A key condition of the agreement was for the Bitcoin project to be diminished making acceptance of Bitcoin voluntary for the private sector and restricted for the public sector. 791
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