Developing countries lack sophisticated financial systems to manage their currencies and are turning to cryptocurrencies as a legal monetary tender. A leader in that movement is El Salvador, which this month passed a bill adopting Bitcoin (BTC) as the nation’s legal tender. Asia Broadband, Inc. (OTC: AABB) is one company that has jumped on the El Salvadoran announcement by declaring its plans to use the country as a springboard to expansion in Central America with the introduction of its AABB Gold token (AABBG).
Asia Broadband, a resource company focused on the production, supply and sale of precious and base metals, primarily to Asian markets, recently released AABBG as its mine-to-token gold-backed cryptocurrency. The company will be targeting major Salvadoran retailers to engage in acceptance and processing agreements for customer purchases with the coin.
The introduction of cryptocurrencies into countries such as El Salvador and Venezuela come as the U.S. dollar, once viewed as the most stable global currency, has suffered during the COVID pandemic as the Federal Reserve has vastly increased the number of dollars in circulation.
“Central banks are increasingly taking actions that may cause harm to the economic stability of El Salvador. To mitigate the negative impact of central banks, it becomes necessary to authorize the circulation of a digital currency with a supply that cannot be controlled by any central bank and is only altered in accord with objective and calculable criteria,” El Salvadoran President Nayib Bukele said.
Asia Broadband’s planned introduction of AABBG to El Salvador will include opening a satellite office in the country to eventually serve as its Central and South American hub for business development and marketing.
El Salvador’s recent adoption of Bitcoin as the country’s legal tender has created a cryptocurrency-focused economy and what Asia Broadband believes to be a tremendous growth opportunity for AABBG and its AABB Wallet.
Nearly 70% of El Salvador’s population of 6 million are without bank accounts or credit cards but do have cell phone and internet access across the country, allowing access to the AABB wallet. The company also points to the fact that more than 2 million Salvadorans living in the U.S. send approximately USD 5 billion annually to El Salvador, amounting to more than 20% of the country’s gross domestic product.
Anticipating growth in the Latin American market, Asia Broadband is currently developing a Spanish language version of its AABB Wallet.
For more information about Asia Broadband and its AABBG cryptocurrency and AABB Wallet, visit www.aabbgoldtoken.com.
(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
