5 Countries Will Accept Bitcoin As Legal Offer By End Of Next Year, Says Bitmex CEO

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By the end of next year, at least five countries will have accepted bitcoin as legal tender, the CEO of the cryptocurrency exchange Bitmex has predicted. He cited three main reasons why he came to this conclusion. “Developing countries will be entering crypto in 2022,” he said.

More countries will adopt Bitcoin as legal tender

Bitmex cryptocurrency exchange CEO Alex Hoeptner predicted that developing countries would lead the way in bitcoin adoption. He detailed last week:

My prediction is that by the end of next year we will have at least five countries that will accept bitcoin as legal tender. All will be developing countries. Here’s why I think developing countries will be getting into crypto in 2022.

The CEO proposed three main factors that led to the adoption of bitcoin in developing countries and why he made this prediction.

The first concerns remittances. Remittances accounted for 23% of El Salvador’s GDP in 2020, Hoeptner described. Citing data from the World Bank, he added that low- and middle-income countries receive around 75% of total global remittances, and $ 540 billion in remittances have reached low- and middle-income countries. in 2020.

“This money has to find a way to get home one way or another,” he said. “But the current system of remittances – run by money service providers like Western Union – scams people into charging them an average of 10% just to send money home the next business day.”

The second factor is inflation. The International Monetary Fund (IMF) forecasts inflation for developed countries in 2021 at 2.4% and 5.4% for developing countries.

He explained that people are looking for alternatives to fiat currencies during inflation crises. For example, he said, “As inflation has passed 15% this year in Turkey, crypto adoption has increased. Turkey responded by quickly banning the use of crypto for goods and services, but inflation is now 19.25%. “

Hoeptner noted:

Bitcoin corrects this, with its supply capped at 21 million. And developed countries – and / or their peoples – are taking notice.

The third factor is political. He explained that many politicians or leaders “are knowledgeable and savvy, and have an interest in positioning themselves as progressive, populist and new age thinkers.”

He said: “Over the next year, and as El Salvador resolves the issues surrounding its deployment, savvy politicians will be thinking about how they can take a similar path and how it could benefit them. , as well as to their electors ”, specifying:

What El Salvador has done is take the first leap of faith, making similar moves by other countries much easier to consider.

However, the CEO cautioned, “Any failure of these leaders in the implementation phase can hamper wider adoption of cryptocurrencies in general. This is the dangerous dilemma that awaits us.

Do you agree with the CEO of Bitmex? Let us know in the comments section below.

Image credits: Shutterstock, Pixabay, Wiki Commons

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