Bitcoin to be made legal tender in three more nations this year?
I’m putting it out there. It’s my view that Bitcoin will become legal tender in another three countries this year.
Over the weekend, the President of El Salvador, Nayib Bukele posted a number of tweets relating to his Bitcoin predictions, such as “2 more countries will adopt it as legal tender,” and that it will reach $100,000 this year. Indeed, El Salvador made history in September last year by becoming the first country in the world to make the world’s largest cryptocurrency an official currency alongside the U.S. Dollar.
I have every confidence that President Bukele is bang on about other countries adopting Bitcoin as legal tender in 2022. Yet I think things will advance further and it’s likely that another three countries will follow El Salvador’s revolutionary move into the digital age.
With poorer countries suffering due to weak currencies that are vulnerable to changes in the market, which sparks soaring inflation, they tend to become reliant on major ‘first-world’ currencies, such as the Dollar, to complete transactions.
However, this can lead to costly issues. A robust U.S. Dollar will impact emerging-market economic outlooks, as developing countries have adopted a great deal of Dollar-dominated debt in recent decades.
As such, by adopting a cryptocurrency as legal tender these nations have a currency that doesn’t depend on market conditions within their economy, or from another country’s economy. Indeed, as it operates globally, Bitcoin is impacted by broader, global economic changes.
Moreover, cryptocurrencies could also help to increase financial inclusion for individuals and businesses in developing countries, as they can sidestep traditional preconceptions of banks and other financial services providers.
Going back to President Bukele’s tweets about more countries adopting Bitcoin as legal tender in 2022, many of his followers put forward which nations they thought would do this. These included Tonga, Turkey and Bolivia, amongst others. Additionally, considering their reliance on remittances, amongst other factors, I believe countries such as Panama, Paraguay, Guatemala and Honduras, could also adopt Bitcoin.
In fact, shortly after El Salvador adopted Bitcoin last September, Panama unveiled a bill to make the cryptocurrency legal tender. Furthermore, Congressman Gabriel Silva tweeted that this may generate employment in Panama and attract overseas investment.
Also, a bill to regulate Bitcoin and crypto trading and mining in Paraguay passed the Senate in December. Could this be the first step to making Bitcoin legal tender?
Digital currencies are also the focus of central banks in Honduras and Guatemala say officials, but they are currently taking a different stance. They’re eyeing central bank digital currencies (CBDCs), which again highlights that they are also confident that digital is the future of money, and I think they’ll ultimately adopt a cryptocurrency as legal tender.
Therefore, I am in agreement with El Salvador’s President. I’m confident that other nations will follow suit and make Bitcoin legal tender this year. Click here for my YouTube, LinkedIn profile and Twitter accounts.