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El Salvador’s Leading Bank Joins Forces with Flexa To Accept Payments In Bitcoin

El Salvador’s most prominent financial organization Bancoagrícola is scheduled to promote the nation’s Bitcoin adoption policy after its alliance with virtual payments gateway platform Flexa.

According to a statement posted by Flexa this Thursday, Bancoagrícola has signed a contract with the virtual currency payment platform to allow Bitcoin transactions for the bank’s clients. These clients also include merchant and retail clients.

Bancoagrícola, as part of the association, is allowing its clients to make payments through credit cards designated in US dollars through Flexa or other Lightning Network-supported virtual wallets such as Éclair and Chivo. In accordance with the release, these payments will not be accompanied by any extra fees and will be covering loans as well as merchant goods, aside from others.

Flexa recently allowed compatibility for Lightning payments with the feature, which is, according to reports, meant for merchant customers.

Bancoagrícola’s joining forces with Flexa comes right after the official acceptance of Bitcoin as a legal currency in El Salvador.

News of retailers based in El Salvador allowing payments in Bitcoin is becoming popular on social networking platforms with a source reporting that McDonald’s branches are also accepting payments in Bitcoin.

According to the nation’s president, if El Salvador’s new Bitcoin law turns out to be successful, international financial services providers such as Western Union and MoneyGram may end up losing up to 400 million USD per year.

Remittance actually makes up for a substantial proportion of the nation’s gross national product with 23 percent in the previous year alone, with 70 percent of the population, according to reports, obtaining funds from abroad.

Last month in August, the CABEI, or the Central American Bank for Economic Integration declared that adopting Bitcoin as a legitimate medium of exchange could affect remittances in the region favourably. At that time the CABEI vowed to help the nation in developing technical infrastructure for Bitcoin adoption and being in line with global anti-money laundering laws.

A majority of El Salvador’s population is purportedly against its decision to embrace Bitcoin as a legal currency, which goes to show that the Bitcoin Law is not exactly without opposition. International financial corporations such as the International Monetary Fund have also cautioned against accepting Bitcoin as a legal national tender.

The nation’s Bitcoin Law came into effect on the 7th of September, three months after its parliament approved the historic bill.

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