The introduction of Bitcoin in El Salvador is now official, and financial institutions will now start accepting the cryptocurrency as a means of payment
El Salvador’s largest bank, Bancoagrícola, has announced that its customers can now repay their loans and settle their credit card bills with the leading cryptocurrency. This latest development comes after El Salvador made Bitcoin legal tender.
According to Bancoagrícola, customers can use Bitcoin to purchase goods and services from merchants connected to the bank’s payment gateway. Bancoagrícola has partnered with Flexa, a leading all-digital payment network, to offer these services to its customers.
The press release states: “Bancoagrícola customers can now use any Flexa or Lightning enabled wallet app to pay Bitcoin for US dollar-based loans and credit card payments at the exact market price, with no additional fees or spreads. “
Carlos Mauricio Novoa, COO of Bancoagrícola, stated that the bank is excited about this partnership and the acceptance of Bitcoin for various payment purposes. He added that the bank is constantly innovating to foster sustainable economic development.
El Salvador businesses and merchants using Bancoagrícola’s Wompi gateway can accept BTC payments through Flexa. Currently, BTC payments will mainly be online, but the bank plans to make the service compatible with other payment gateways.
Bancoagrícola said its customers should download their latest mobile app or visit their official website to make payments using Bitcoin. El Salvador set a record by becoming the first country in the world to adopt Bitcoin as legal tender.
The Central American country uses the US dollar and Bitcoin as official legal currencies. Corporations and businesses operating in El Salvador are required to accept BTC payments from their customers. Although the rollout has not gone smoothly, the government is working to ensure that Bitcoin succeeds as legal tender in the country.
The government recently bought $ 200 million worth of bitcoin to fuel their adoption efforts. It has also installed numerous Bitcoin ATMs to make it easy for people to buy and sell BTC and also convert it to US dollars and vice versa.