By the end of next year, a minimum of 5 countries can have accepted bitcoin as a monetary system, the chief operating officer of cryptocurrency exchange Bitmex has foretold. He cited 3 key reasons why he arrived at this conclusion. “Developing countries can jump into crypto in 2022,” he said.
More Countries can Adopt Bitcoin as Legal Tender
The chief operating officer of cryptocurrency exchange Bitmex, Alex Hoeptner, has foretold that developing countries can lead the method in bitcoin adoption. He elaborated last week:
“My prediction is that by the end of next year, we’ll have a minimum of 5 countries that settle for the bitcoin legal tender system. All of them are going to be developing countries. Here’s why I feel developing countries can jump into crypto in 2022.”
The chief operating officer offered 3 main factors driving the adoption of bitcoin in developing countries and why he came up with this prediction.
The first is remittances. Remittances created 23% of El Salvador’s GDP in 2020, Hoeptner represented. Citing data from the planet Bank, he said that low and middle-income countries receive 75% of total world remittances and $540 billion in remittances reached low and middle financial income countries in 2020.
“This money has to search out some way home somehow,” he said. “But this system of remittances – diode by money service suppliers like Western Union – is splitting individuals off by charging them a mean of 100 percent simply to send money home ensuing business day.”
The second issue is inflation. The International fund (IMF) forecasts inflation for developed countries in 2021 at 2.4% and 5.4% for developing countries.
He explained that individuals look for alternatives to traditional currencies throughout inflation crises. As an example, he said: “As inflation climbed well higher than 15% this year in Turkey, crypto adoption surged. Turkey responded by quickly forbidding the utilization of crypto for products and services, however inflation is currently at 19.25%.”
Bitcoin fixes this, with its capped offer of 21 million. And developed countries – and/or their individuals – square measure noticing.
The third issue is politics. He explained that a lot of politicians or rulers “are skilled and savvy, associate degreed have an interest in positioning themselves as progressive, populist, and new age thinkers.”
He opined, “Over ensuing year, and as El Salvador works out the kinks in its rollout, savvy politicians are going to be thinking of however they’ll take an analogous path, and the way it would profit each them and their constituents,” elaborating:
“What El Salvador did is take the primary leap of faith, creating similar moves by alternative countries a lot easier to contemplate.”
However, the chief operating officer cautioned: “Any failings by these leaders within the implementation section might hurt wider adoption of cryptocurrencies generally. That’s the harmful quandary that lies ahead.”