El Salvador’s adoption of Bitcoin is now official, and financial institutions will begin accepting the cryptocurrency as a payment method
Bancoagrícola, the largest bank in El Salvador, has announced that customers can now use Bitcoin to pay loan installments and settle credit card balances. This development follows the country’s decision to adopt Bitcoin as legal tender alongside the US dollar.
According to Bancoagrícola, customers can use Bitcoin to purchase goods and services from merchants connected to the bank’s payment gateway. The bank partnered with Flexa, a leading digital payments network, to enable these services for its clients.
The press release explained: “Bancoagrícola customers can now use any Flexa- or Lightning-enabled wallet app to pay in Bitcoin for loans and credit card payments in US dollars at the exact market rate, without additional fees or spreads.”
Carlos Mauricio Novoa, COO of Bancoagrícola, said the bank is enthusiastic about the partnership and the acceptance of Bitcoin for a variety of payment purposes. He emphasized that the bank continually seeks innovation to support sustainable economic development.
Businesses and merchants in El Salvador that use Bancoagrícola’s Wompi gateway can accept BTC payments via Flexa. Initially, BTC payments will be mainly online, but the bank is planning to expand compatibility to other payment gateways.
Bancoagrícola advised customers to download its latest mobile app or visit its official website to make Bitcoin payments. El Salvador made history as the first country in the world to declare Bitcoin legal tender.
The Central American nation uses both the US dollar and Bitcoin as official currencies. Businesses operating in El Salvador are required to accept BTC payments from customers. Although adoption has faced challenges, the government remains committed to ensuring Bitcoin succeeds as legal tender in the country.
To support adoption efforts, the government recently purchased $200 million worth of Bitcoin. It has also installed numerous Bitcoin ATMs to make it easier for people to buy and sell BTC and convert between Bitcoin and US dollars.