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El Salvador’s dollarization lowers transaction and financial costs, and eradicates risk in foreign exchange. Along with the U.S. dollar, Bitcoin became a legal currency in El Salvador in September, 2021.
The government of El Salvador has placed a high priority on its digital transformation, both as a means of simplifying processes and procedures and expanding the benefits of digital services to the entire population.
The country faces economic challenges, including a high public debt and economic policies that can be inconsistent. This volatility creates an uncertain environment for businesses.
Corruption remains a significant issue in El Salvador, affecting various aspects of business operations from obtaining permits to dealing with government officials. This can increase operational risks and costs for businesses.
