By the end of next year, five countries will accept Bitcoin as legal tender, according to Bitmex CEO.
At least five nations will adopt bitcoin as legal cash by the end of next year, according to the CEO of cryptocurrency exchange Bitmex. He explained why he came to this conclusion by citing three crucial factors. “Developing countries will embrace cryptocurrency in 2022,” he said.
More Countries Will Adopt Bitcoin as a Legal Medium of Exchange.
Alex Hoeptner, the CEO of cryptocurrency exchange Bitmex, believes poor countries will lead the way in bitcoin adoption. Last week, he explained:
By the end of next year, I believe at least five nations will have accepted bitcoin as legal money. They’ll all be underdeveloped countries. Here’s why I believe underdeveloped countries will embrace cryptocurrency by 2022.
The CEO outlined three major elements that are boosting bitcoin acceptance in underdeveloped nations, as well as why he made this forecast.
Remittances are the first. According to Hoeptner, remittances accounted for 23% of El Salvador’s GDP in 2020. He said that poor and middle-income countries get roughly 75% of total global remittances, with $540 billion in remittances reaching low and middle-income nations in 2020, according to World Bank figures.
“This money has got to find a way home somehow,” he said. “But the current system of remittances – led by money service providers like Western Union – is ripping people off by charging them an average of 10% just to send money home the next business day.”
Inflation is the second element. Inflation is expected to be 2.4 percent in affluent nations and 5.4 percent in developing countries in 2021, according to the International Monetary Fund (IMF).
During inflation crises, he added, people look for alternatives to fiat currency. “As inflation in Turkey reached far beyond 15% this year, crypto usage soared,” he explained. Turkey immediately responded by prohibiting the usage of cryptocurrency for products and services, but inflation has now reached 19.25%.”
According to Hoeptner:
Bitcoin fixes this, with its capped supply of 21 million. And developed countries – and/or their people – are noticing.
What El Salvador did is take the first leap of faith, making similar moves by other countries much easier to consider.
Politics is the third factor. Many politicians or rulers, he added, “are skillful and clever, and are interested in portraying themselves as progressive, populist, and new-age thinkers.”
“Over the next year, as El Salvador works out the kinks in its rollout, savvy politicians will be thinking of how they can take a similar path, and how it might benefit both them and their constituents,” he predicted, adding, “savvy politicians will be thinking of how they can take a similar path, and how it might benefit both them and their constituents.”
“Any failures by these leaders in the execution phase may damage wider acceptance of cryptocurrencies in general,” the CEO said. That is the perilous situation that lies ahead.”
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