EL Salvador Bitcoin Move Could Cost Western Union $400 Million A Year

El Salvador’s bitcoin adoption will increase the wealth of its people while diminishing the commission fees paid out to intermediaries, CNBC reported. President Nayib Bukele estimates that companies like Western Union and MoneyGram will lose about $400 million a year in remittance fees due to the country’s bitcoin adoption.

Cross-border remittance inflows account for a substantial portion of El Salvador’s gross domestic product (GDP), nearly 25%. Major money service providers capture that yearly movement by charging hefty fees for sending and receiving transactions. Many Salvadorans rely on money sent from family members living abroad to help pay living expenses or increase their quality of life.

However, since officially adopting bitcoin as a lawful currency on September 7, El Salvador now provides a better option for its citizens looking to send or receive money overseas. Salvadorans are now empowered to do what they wish with their money without having to wait in lines, ask for permission, or wait several business days by leveraging the Bitcoin and Lightning networks to send and receive instant, cheap payments worldwide.