Next, Nicolas Burtey also announced that Blink Wallet has added the ability to buy and sell Bitcoin from Salvadorian bank accounts.
"It has been the main request that we got in El Salvador. The availability of buy and sell bitcoin will enable a lot of people living in El Salvador to just go to fiat payment world if they choose to. It's currently in beta so please don't buy real estate with it just yet," he said on stage.
"Lastly, we are announcing a partnership with Distribuidora Morazán, supplier of 40,000 merchants in El Salvador. I believe this is one of the most significant development in the adoption of bitcoin in El Salvador this year," said Nicolas Burtey.
"The number one reason we get when interviewing Tiendas (small local merchants) in the country of El Salvador for why they are not accepting, or often stop accepting bitcoin, is that it creates more hurdles than solutions to problems."
"If the supplier doesn’t accept bitcoin, then the Tienda needs to find a way to sell bitcoin to pay supplier with cash - keep in mind that most merchants can’t save in bitcoin, they need to the money to live."
"So the main way they can sell bitcoin, if they don’t have a bank account, is with an ATM. But ATM are expensive (still onchain only with Chivo), need to wait for a block confirmation, often are out of cash, sometime need to spend weeks with support when issues arise."
"This is why many Tiendas stopped accepting bitcoin since the bitcoin law," he explained on X.
"Distribuidora Morazán is a company with thousands of employees, second largest distributor in El Salvador and Guatemala. We are announcing that they have been working with @blinkbtc to accept bitcoin payment from their merchants, starting with a pilot program."
"Now the Tienda can accept bitcoin and pay the supplier with bitcoin. No more impedance mismatch. But it gets better."
"Collecting cash for Distribuidora Morazán is expensive. Imagine having drivers collecting cash from 40,000 locations! Bitcoin is making them more efficient. So now to incentivize the merchant to pay their bill with bitcoin, they are giving a 5% discount."
"I believe this will have a material impact in adoption of bitcoin in El Salvador in the upcoming year."
Per Bitcoin Magazine, "the pilot program has already been rolled out to 30 of the target 80 Phase I merchants, with plans to onboard up to 3% of Distribuidora Morazán's customers, equivalent to 1,000 merchants, in 2024."