… the Central Bank will continue to analyze each payment subsystem to propose computer and operational designs, as well as regulations according to the specific conditions of our economy, in such a way as to minimize the risks involved in the compensation and settlement processes derived from the use of different means of payment.” BCR

Dollarization

El Salvador uses the USD and any Colones are exchanged for USD as stated by the central bank.

El Salvador has high overseas remittances as income and hence cross-borders payments are vital (24 percent of GDP). 

The BCR is committed to modernising payment systems. Even Bitcoin was approved recently amid much press coverage. 

El Salvador has a very high unbanked population (reported as 70 percent). 

Mobile coverage is very high, reported as 145%.

The BCR is supporting e-money. 

There are not immediate plans for CBDC adoption but the intent to modernise exists and due to the mobile phone adoption, when CBDCs are implemented for the USD, then the BCR could approved them.

   

 

 

By cryptorocks_editor

Editor.