FOR EL SALVADOR ACCEPTING BITCOIN HAS BECOME A WISE MOVE.
In 2023, El Salvador will offer better public safety indexes that favor domestic tourism in the different commercial sectors. During the government of President Nayib Bukele, different strategies have been implemented to combat crime and reduce the insecurity that is experienced every day in the Salvadoran territory. According to the firm Forward Keys, specialized in sector studies, During the year 2022 El Salvador registered an increase of 45% in the number of tickets compared to the year 2019.
El Salvador is one of the top tourist destinations for 2023. The travel guide company, Lonely Planet, revealed its 18th annual “Best in Travel” list of favorable destinations for activities in 2023. The list includes several destinations in Latin American countries, which have been contemplated by the company, including El Salvador.
Thanks to the decreases in criminality due to the implementation of the Territorial Control Plan, favorable conditions have been created for tourists and investors to visit El Salvador safely, which has been reflected in the data obtained at the end of 2022 in this sector, and a greater increase in tourism inflow is expected for the current year 2023. Adopting the Bitcoin has become a wise move, it is helping them to improve their economy, it is reducing the fiscal deficit, the GDP increased, thanks to Bukele’s attempt to reduce corruption. The fact of adopting a currency like bitcoin as legal tender, so far it is going well, it has made Bukele look good inside wallstreet, the economy is doing well, and he can deal with the debt, it is an optimistic message. He has set up a bitcoin embassy in the US...An alternative that protects him from inflation... Send money, remittances very interesting, with bitcoin, no commissions. Digitalization but not yet implemented in all stores, needs a process of implementation.
The market was skeptical of Bukele’s idea, but now he has become a star on wall street: the best performing bonds yield 19%, have a lot of risk...Salvador is returning those bonds, and is generating a lot of confidence on wallstreet...(they love his willingness to pay). 20% return on Salvador bonds…
Microfinance in El Salvador has played a very important role in the development of the country. El Salvador has a very competitive market and has a large number of different organizations that offer financial services to the micro and small business sector in the country. Among the organizations that operate in the industry are private banks, savings and loan companies, savings and loan cooperatives, regulated and nonregulated financial institutions, non-governmental organizations (NGOs), and other companies.
According to the study conducted by FELABAN (Latin American Federation of Banks), El Salvador has increased by 281% the number its operation.
We expect to close the year 2023 with a loan portfolio growth of 10.5%, which will allow us to reach a total portfolio of close to US$200 million; we expect to close deposits with US$140 million and total assets of US$250 million. At the end of the year, the number of employees will be approximately 560. The expected growth rate for the loan portfolio is similar to the one we have registered in recent years; we are growing at a good pace, but taking care of the quality of the portfolio.
We all know that the USA is an important commercial partner for the country, on the other hand, a high percentage of the population resides in that country that has emigrated abroad in search of new opportunities and the remittances that they send already constitute 25% of the GDP. We have also seen how the birth and strengthening of several MYPES have been supported by resources coming from Salvadorans residing in that country.
Another thing we have seen is that
El Salvador is leading the way in cryptocurrency adoption, and its success (or failure) could have a huge impact on countries that are considering implementing a digital currency as legal tender. As we look to El Salvador’s future, it is clear that the political environment has played a role in how people talk about their national currency.
Remittances make up more than 20% of the country’s GDP, according to the World
Economic Forum. Given the amount of money going into international bank transfer fees,
Bitcoin could be an attractive alternative. El Salvador adopted Bitcoin as its national currency primarily to combat poverty and help unbanked citizens. The government hoped to improve economic opportunities for citizens by allowing them to access the digital