Why did El Salvador choose cryptocurrency for remittances?

The country of El Salvador is a very familiar name to crypto lovers. Because El Salvador is a country that has written its name in history by being the first country in the world to officially recognize Bitcoin as a legal currency. El Salvedul is a country where bitcoin transactions are officially legal and offers their citizens to trade with bitcoins. While most of the world's developed countries or countries have severely restricted citizens from using Bitcoin, El Salvador legalized Bitcoin alongside the US dollar as a legal tender in the country. However, there are several reasons behind this. So let's know about these reasons:

source

Receiving remittances through Bitcoin:

Like other countries, many of the citizens of the country of El Salvador are located in different countries of the world and the remittances they send to their countries also contribute well to their GDP. The amount of remittances in the country contributes about twenty percent of the country's GDP. The amount of remittances that the country's citizens send to the country every year is more than about 400 billion dollars annually. As a result, the remittance fighters of the country who stay abroad have their relatives dependent on their money. Which is mainly sent in US dollars through most of the information which requires a certain amount of fees and time. In this case transactions through Bitcoin help them to save this money and time.

Avoiding middleman hassles:

Remittance fighters must rely on a bank or third party to send their hard-earned money back home. Many times when transactions are done internationally through a third party, it is time consuming as well as paying an additional fee. In this case transactions through Bitcoin become very fast and easy.

Affordable:

When the transaction is done from one country to another country, a lot of fees have to be paid to complete the international transactions. And if the amount of transaction is high, the amount of this fee also increases. But the transaction through Bitcoin is saved from paying that extra fee because when doing international transactions from one country to another country through Bitcoin, no matter how much the amount is, the amount of the transaction fee is fixed and it is relatively low. .

However, due to these benefits, the country has chosen Bitcoin for international transactions and has declared transactions through Bitcoin legal. It is indeed a bold move for such a country. But there are some limitations. As we know the price of Bitcoin becomes very unstable in that case when the citizen of the country will transact through Bitcoin the amount may be less or more. However, the country has made history by becoming the first country in the world to legalize Bitcoin transactions.