El Salvador Makes New Strides in Embracing Bitcoin: Banks Accepting BTC for Loans

El Salvador is once again in the limelight for its crypto-centric policies. In a recent update, two Salvadoran banks have started accepting Bitcoin for loan repayments.

Banks Begin to Accept Bitcoin for Payments

According to an official tweet by Volcano Energy, both Cuscatlan Bank and Agricola Bank in El Salvador are now accepting Bitcoin as payment for loans. This means that users can directly use Bitcoin to settle their credit card debts or loans without the need for converting to fiat currency.

No Details Yet on Loan Repayment Process

While the tweet didn’t delve into the specifics of the loan or credit card debt repayment process, it did underscore the increased utility of Bitcoin. This is particularly noteworthy given the cryptocurrency’s notorious volatility compared to traditional fiat currencies.

Volcano Energy’s Renewable Power Project

Volcano Energy, the source of this news, is itself a noteworthy entity. It is a renewable energy park under construction, designed to produce 241 megawatts of power. Situated in the northwestern town of Metapán in El Salvador, the project will feature 169 megawatts of solar power and 72 megawatts of wind energy.

Crypto Education in Public Schools by 2024

In addition to the new banking services, Volcano Energy also revealed that by 2024, every public school in El Salvador will offer education on Bitcoin. The NGO Mi Primer Bitcoin is collaborating with the Salvadoran Ministry of Education and has already trained 150 teachers to spread financial literacy related to cryptocurrencies.

（Image via @Volcano_Energy）

Bitcoin Adoption Still Lagging in El Salvador

Despite the government’s aggressive push for Bitcoin adoption, recent reports by Ark Invest’s research assistant David Puell indicate that adoption rates are still relatively low. In fact, they even trail behind those in Argentina.

Factors for Low Bitcoin Adoption

Puell suggests that the Salvadorans’ preference for the U.S. dollar, coupled with Bitcoin’s price volatility, are primary reasons for the slow adoption. The dollar has been the official currency of El Salvador since 2001 and has provided a stable and trusted currency system, unlike the volatile nature of Bitcoin.

（Image via HK01）

Conclusion

Although El Salvador has given Bitcoin legal status similar to the U.S. dollar, its adoption rate remains low. This is mainly due to its extreme volatility and the higher technical barriers involved in its usage. Despite these challenges, the nation is making strides in integrating Bitcoin into various aspects of financial life, from loans to education.

Keywords: El Salvador, Bitcoin, BTC, Volcano Energy, Cuscatlan Bank, Agricola Bank, crypto education, Mi Primer Bitcoin, Ark Invest, David Puell, loan repayments, cryptocurrency adoption, price volatility