Clients of the largest bank in El Salvador, Boancoagricola, can now use bitcoin to make payments on loans and credit cards, as well as to pay for goods and services.
To make payments in bitcoins, the bank, founded in 1955, entered into a partnership with the American payment network Flexa. Users can use the first cryptocurrency for payments in the bank’s mobile application.
According to Boancoagricola representatives, the BTC rate is calculated at the time of payment and users do not pay any additional commissions or fees. That being said, the app works with any Lighting Network compatible wallet, including the Chivo wallet launched by the El Salvadorian authorities.
Stores and merchants can also accept bitcoins using the bank’s app. However, at the moment, such payments are best suited for online payments, and not for payments in brick-and-mortar stores. However, Flexa is working on such a feature as well.
“The whole point is that we want to make cryptocurrency payments as easy as paying by card, if not simpler,” said Tyler Spalding, CEO and co-founder of Flexa.
Interestingly, part of the US population supports El Salvador in recognizing bitcoin as legal tender. 27% of respondents surveyed by YouGov would like to see such an initiative in America.
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