The CEO of the cryptocurrency exchange Bitmax predicts that at least five countries will accept Bitcoin as a legal tender by the end of next year. He cites three main reasons for coming to this conclusion. “Developing countries will jump to crypto in 2022,” he said.
More countries will accept Bitcoin as a legal tender
Alex Hoptner, chief executive of the cryptocurrency exchange Bitmax, predicts that developing countries will move towards adopting bitcoin. He elaborated last week:
My prediction is that by the end of next year, we will have at least five countries that will accept Bitcoin as a legal tender. All of them will be developing countries. Here’s why I think developing countries will jump to crypto in 2022.
The CEO proposed three main reasons for adopting Bitcoin in developing countries and why he came up with this prediction.
The first is remittance. In 2020, El Salvador generated 2 %% remittances of GDP, Hoptner described. Citing data from the World Bank, he added that low- and middle-income countries accounted for about 5% of total global remittances, and that remittances to low- and middle-income countries reached িয়ন 50 billion by 2020.
“Somehow this money has found a way back home,” he said. “But the current system of remittances, led by money service providers like Western Union – is snatching people away by charging them an average of 10% to send money home in the next business day.”
The second reason is inflation. The International Monetary Fund (IMF) has forecast inflation of 2.4% for developed countries and 5.4% for developing countries in 2021.
He explained that during the inflation crisis, people look for alternatives to the Fiat currency. For example, he said: “As inflation in Turkey has risen above 15% this year, the volume of crypto adoption has increased. Turkey reacted quickly by banning the use of crypto for goods and services, but inflation is now 19.25%.
Bitcoin fixes it, it has a supply limit of 21 million. And developed countries – and / or their people – are watching.
The third reason is politics. He explained that many politicians or rulers are “skilled and intelligent, and have an interest in positioning themselves as progressive, public and new-age thinkers.”
He commented, “Over the next year, and while El Salvador is working on the complications in its rollout, intelligent politicians will think about how they can take the same path and how it can benefit both them and their constituents,” detailing:
What El Salvador did was give the first leap of faith, much easier to consider similar steps in other countries.
However, the CEO warned: “Any failure by these leaders at the implementation stage could harm the widespread adoption of cryptocurrency in general. This is the dangerous dilemma ahead.”
Do you agree with the CEO of Bitmax? Let us know in the comments section below.
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