Which Country Accepts Bitcoin Next? BitMEX’s CEO Believes 5 More Countries Will Adopt it Next Year

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After El Salvador made Bitcoin legal tender, many other countries have pondered the same idea. That goes double for South American countries which have financial troubles. Ukraine has drafted a law on cryptocurrencies too, so it’s clear that the world is becoming more open to the idea of Bitcoin and cryptos.

Developing economies have been hit hard by the coronavirus crisis and inflation. That’s precisely the reason why they’re turning to Bitcoin. With El Salvador already on the bandwagon, others are set to follow its example soon. According to BitMEX CEO Alexander Hoptner, 5 more countries will adopt Bitcoin next year.

2022 – Year of Bitcoin?

Hoptner recently praised El Salvador’s decision to go full Bitcoin. He predicted that developing countries will pave the way for global Bitcoin adoption, starting as early as next year. BitMEX’s CEO believes Brazil and the Philippines are next on the list. Lebanon and Kenya could be in the mix as well.

According to Hoptner, there are three key factors why developing countries will accept Bitcoin as legal tender:

  • Political problems
  • Sky-rising inflation
  • Growing need for cheaper and faster international remittances

The aforementioned countries and many others cover that ground. While the developed world is not that bothered by inflation or remittances, people in developing countries suffer from cross-border payments and inflation. For example, El Salvador’s remittances in 2020 made up 23% of the gross domestic product. The World Bank says that in smaller countries, that number can go as high as 75%.

Inflation is another important factor in the decision to adopt cryptocurrencies as legal tender. In Turkey, where it’s currently at just under 20%, there’s rapid crypto adoption. Hoptner isn’t alone in it. Many others believe that up to 5 countries will accept Bitcoin from 2022, including Cardano (ADA) founder Charles Hoskinson. Edward Snowden has also urged countries to jump on the crypto train, saying that “latecomers may regret it”.

Alternative Form of Payment

Hoptner, the BitMEX CEO who took over from Arthur Hayes in December 2020, says that while crypto adoption will certainly grow, traditional finance won’t be useless. Cryptocurrencies will open up the financial system and provide sophisticated and faster payments, but it won’t push the dollar or any other solid currency out of the market. For now, it’ll be a great alternative to fiat money, with a solid position for the future.

El Salvador’s move is a unique one, and we still don’t know if the experiment will work. It’s too early to tell how it goes – a year must pass to see if it’s a failure or success. The world can’t just jump to a decentralized financial system all of a sudden, but it’s good to see that there are alternatives that can change the way we see and use finance.

Bitcoin is a great alternative in developing countries right now and will surely sit in the spotlight next year. With the price currently on the upside, it’ll surely be an attractive option for many countries in 2022.

October 14, 2021: • No Comments

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