I am confused and ignorant. If someone in Salvador receives a BTC and then they sell it how do the dollars actually get into El Salvador? Does a party transfer the dollars into my local bank account without any fee?
a) convert to dollars within the app or go withdraw at an ATM. Or
b) buy things directly with btc. There are videos on social media of people there buying coffee, food, etc.
El Salvador already has the dollars by the way. They dollarized ~20 years ago. It’s the only currency in circulation, besides Bitcoin.
Does the state handle the conversion - ie I sell my BTC to the state and it imports the dollars? This is the part I don’t understand is what part brings in new dollars at a lower cost than Western Union.
By the way, when El Salvador imports products from USA it most likely doesn't pay with cash so the net transfer of physical currency might be very close to zero.
How do they do electronic payments? Regular bank wire transfers. The fees are merely unattractive for small amounts. Western Union is a service for the unbanked.
https://www.quora.com/Can-you-transfer-money-from-El-Salvado...