Factors like remittances and inflation have a bigger impact on developing nations, according to Alexander Höptner, BitMEX’s CEO. As cryptocurrencies can be a solution to it, these developing nations will soon be joining El Salvador to accept BTC as legal tender, adds BitMEX’s CEO.
Höptner predicts in a blog post that about 5 developing countries will accept Bitcoin before 2022, where he also praises El Salvador for embracing BTC.
The political situation, inflation, and international remittances are among the key reasons that encourage these nations to accept cryptocurrencies, further elaborates the CEO.
Developing nations will definitely be among the first to embrace digital assets, to overcome issues like cross-border payments, something that is not much of a worry for consumers from more developed places.
The focus of this conversation was then shifted to remittances, where the CEO explained that they will account for 23% of El Salvador’s GDP in 2020, whereas the World Bank that developing countries and the ones with middle-income get roughly 75% of total worldwide remittances.
Bitcoin can also solve the high inflation problem, and one of the countries that is doing this is Turkey, in the middle of a 19.2 inflation rate.
El Salvador’s Bitcoin adoption will serve as an example for countries interested in crypto in the future. However, politics will play a crucial role when trying to accept Bitcoin as the legal tender, and country leaders need to have a friendly approach to it. Whatever happens, will impact both parties, the developing countries on one hand, and cryptocurrencies on the other.
The future of crypto seems bright and Höptner is not the only one to believe so. There are other names, such as Hoskinson, the Cardano founder, and the famous computer programmer Snowden, who have faith that more and more people will get into the crypto world.
Although many supporters, El Salvador’s adoption of Bitcoin was also criticized by Vitalik Buterin, the co-founder of Ethereum. Making businesses embrace a specific cryptocurrency and leaving them no other choice but that goes against ‘the ideals of freedom’ something that is valued in the crypto environment, concludes Buterin.
Also read: El Salvador to Develop Volcano Powered Bitcoin Mining Project