This year, bitcoin could be used as legal tender in three more countries. These countries will follow the lead of El Salvador, which raised the cryptocurrency to the same level as the US dollar in September 2021.
Bukele’s predictions come true
We have already written that Nayib Bukele addressed his 3.2 million followers on Twitter with a series of bitcoin predictions. He predicted that “2 other countries will accept it as a legal means of payment“. He also said the cryptocurrency will hit the $ 100,000 mark this year.
“I’m sure the young and daring President Bukele was right that other countries will accept bitcoin as a legal payment method in 2022.», Announced Nigel Green, head of the investment company deVere Group. “But I’d take it a step further and say it’s likely that three more countries will follow El Salvador, which is forward looking and heading into the digital age.“
Green explained that low-income countries have long suffered from weak currencies and are extremely vulnerable to market changes, causing rampant inflation.
This is why most of the developing countries depend on the major currencies of the “first world, Such as the US dollar, to conduct transactions.
“However, reliance on a currency from another country also comes with a number of problems, often very costly. For example, the strengthening of the US dollar will have a negative impact on the economic outlook for emerging markets, as developing countries have taken on much of the dollar-denominated debt in recent decades.“
The deVere chief added that by adopting cryptocurrency as legal tender, these countries will immediately have a currency that is not dependent on market conditions in their own economy or directly on another country’s economy.
Green believes that “bitcoin operates globally and therefore is affected by broader global economic changes“.
After President Bukele’s bold tweet, his supporters released their opinions on which countries they believe may move to bitcoin soon. Tonga, Turkey and Bolivia led the way.
According to Managing Director deVere, Panama, Paraguay, Guatemala and Honduras could follow El Salvador’s lead due to reliance on remittances and other factors.
Immediately after El Salvador adopted bitcoin in September, Panama announced the passage of a bill aimed at making cryptocurrency legal tender in the country. Additionally, Congressman Gabriel Silva tweeted that it could create jobs in Panama and attract investment from other countries.
There is no doubt that other countries will soon follow El Salvador’s example. It’s not yet clear how much, but once that happens, bitcoin adoption will increase dramatically across countries around the world.
Source: Financial mirror
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