Developing countries will very soon follow in El Salvador’s footsteps and make Bitcoin their legal tender, according to the recent prediction of BitMEX CEO Alexander Höptner.
In a blog post on Wednesday, Höptner expressed his support for the initiative that El Salvador will adopt Bitcoin as legal tender in September. He predicted that developing countries are “leading the way” for the global adoption of Bitcoin.
“My prediction is that by the end of next year, we will have at least five countries that will accept Bitcoin as legal tender. They will all be developing countries. ‘ Höptner said.
At the time of writing, Bitcoin is trading at a price of $ 57,255.55. Source: CoinMarketCap
According to Höptner, developing countries will adopt Bitcoin much faster than already developed countries. This, due to three main factors, first the growing need for cheaper and faster international remittances, recurring inflation and political problems.
Unlike consumers in already developed countries. People in developing economies are more affected by problems related to the high transaction costs of remittances and recurring inflation, according to Höptner.
Likewise, Höptner pointed out that remittances represented 23% of El Salvador’s GDP during 2020. He also added that people around the world increasingly consider Bitcoin as a viable solution to face the problem of inflation. . Taking as an example, the rapid adoption of cryptocurrencies in Turkey, amid an annual inflation rate of 19.2%.
El Salvador will be the driver for the adoption of cryptocurrencies as legal tender
Höptner commented that the adoption of Bitcoin as legal tender in El Salvador will make it easier for other countries in the world to consider similar actions.
“It is a reality that world politics will play an important role in the adoption of Bitcoin as legal tender, it is also true that any failure of these leaders in the implementation phase can damage a wider adoption of cryptocurrencies in general”, Höptner added.
Höptner is not alone in thinking that more countries will follow El Salvador’s example in adopting Bitcoin. In September, Cardano CEO Charles Hoskinson predicted in a YouTube interview that many more countries will adopt cryptocurrencies. Also, the famous world-renowned computer programmer Edward Snowden believes that “newcomers to the cryptocurrency market may regret having hesitated.”
However, some top figures within the crypto space have been hesitant to praise the adoption of crypto in El Salvador. Which was a decision promoted by President Nayib Bukele. On Friday, Ethereum co-founder Vitalik Buterin criticized Bukele’s approach and methodology for adopting Bitcoin, arguing that forcing companies to accept a specific cryptocurrency is “contrary to ideals of freedom, which are supposed to be so important. for the cryptocurrency space. “
Did you like the content? Share it