Banking company of America, one of the nation's largest fiscal institutions based on total assets, believes El Salvador could have a lot to gain with its latest foray into Bitcoin (BTC).

In a study published last week, analysts at the bank said Republic of el salvador'south decision to recognize BTC as legal tender could streamline remittances, promote financial digitization, provide consumers with greater choice, and open up upward the country to American firms and digital currency miners.

The bank noted that remittances account for a staggering 24% of El Salvador'due south gross domestic product, but a sizable chunk of that goes toward transaction fees.

"Using Bitcoin for remittances could potentially reduce transaction costs compared to traditional remittance channels," the report said, according to an image provided by land-backed Diario El salvador. "The idea is that Bitcoin could be used as an intermediary for the cross-border transfer and so that dollars are converted to Bitcoin past the sender and and then converted back to dollars domestically by the receiver."

In June of this year, El salvador became the first nation-state to accept Bitcoin as legal tender, marking an of import milestone in the digital currency's evolution from obscurity to mainstream acceptance. The conclusion to integrate BTC into the country's financial system has been met with criticism by the International Budgetary Fund and the United Nations' Economic Commission for Latin America and the Caribbean. Meanwhile, JPMorgan Hunt believes El Salvador'southward Bitcoin gambit could identify additional force per unit area on the network's already limited ability to serve as a medium of exchange.

Related: Within Republic of el salvador's Bitcoin experiment: Cointelegraph video report

Survey data shows half of Salvadorans are skeptical almost using BTC as legal tender. Those who cull to adopt BTC for transactions can use the state-backed Chivo Bitcoin wallet, among many other options available to them.

Since El Salvador recognized Bitcoin as legal tender, several other Latin American nations accept hinted at pursuing a cryptocurrency strategy of their ain. However, until now, no other state has followed in Republic of el salvador's footsteps.

Related: Republic of el salvador to airdrop $30 in Bitcoin to every adult denizen