5 countries will accept Bitcoin as a legal means of payment by the end of next year, says the Bitmex CEO -
5 countries will accept Bitcoin as a legal means of payment by the end of next year, says the Bitmex CEO -
by the end of next year at least five countries Bitcoin will have accepted as a legal means of payment, the CEO forecast the Bitmex cryptocurrency exchange. He called three main reasons why he came to this conclusion. "Developing countries will start in crypto in 2022," he said.
Other countries will take over Bitcoin as a legal means of payment
The CEO of the Bitmex cryptocurrency exchange, Alex Hoeptner, has predicted that developing countries will be leading when introducing Bitcoin. He explained last week:
My forecast is that we will have at least five countries by the end of next year that accept Bitcoin as a legal means of payment. All will be developing countries. So I think that developing countries will start in crypto in 2022.
The CEO called three main factors for the introduction of Bitcoin in developing countries and why he came to this prediction.
The first are transfers. In 2020, the transfers made 23% of the EL Salvador GDP, Hoeptner described. Care for the World Bank's data, he added that countries with low and medium-sized incomes receive about 75 % of the total global transfers and that transfers of $ 540 billion reached countries with low and medium-sized incomes in 2020.
"This money somehow has to find a way home," he said. "But the current transfer system - led by cash service providers such as Western Union - cheats people by invoicing an average of 10 % only to send money on the next working day."
The second factor is inflation. The International Monetary Fund (IMF) predicts an inflation rate of 2.4% for industrialized countries and 5.4% for developing countries for 2021.
he explained that people in inflation crises are looking for alternatives to fiat currencies. For example, he said: "When inflation has increased well over 15 % in Turkey this year, the introduction of cryptocurrencies rose sharply. Turkey reacted by quickly banning the use of crypto for goods and services, but inflation is now 19.25 %."
Hoeptner noticed:
Bitcoin fixes this with its limited offer of 21 million. And developed countries - and/or their population - notice.
The third factor is politics. He explained that many politicians or rulers are "qualified and versed and have an interest in positioning themselves as advanced, populist and new-aging thinkers.
he said: "In the course of next year, and while El Salvador works out the Knicke in his introduction, experienced politicians will think about how they can take a similar way and how they could benefit both of them and their voters," he explained:
What El Salvador did is the first advance of trust that makes it much easier to consider similar steps from other countries.
However,the CEO warned: "Any failure of these managers in the implementation phase can generally affect a broader acceptance of cryptocurrencies. This is the dangerous dilemma that lies ahead."
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