BitMEX CEO Predicts Five Developing Countries Will Accept Bitcoin As Legal Offer Next Year Here’s Why

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BitMEX CEO Alexander Hptner predicts that five developing countries will follow in El Salvador’s footsteps and adopt Bitcoin (BTC) as legal tender by next year.

In a blog post, the head of the crypto exchange said that BTC would financially help citizens in developing countries by reducing transaction fees associated with sending money around the world.

“Remittances accounted for 23% of the GDP (gross domestic product) of El Salvador in 2020. Globally, almost 10% of the GDP of the Philippines, which has more than 10 million Filipino workers abroad. According to World Bank data, low- and middle-income countries receive about 75% of total global remittances.

This money has to find a way to get home one way or another. But the current system of remittances is… paying [people] an average of 10% just to send money home the next business day… People deserve better. So, is it any surprise that Bitcoin, with its almost negligible fees and fast 24/7/365 transactions, is attracting interest from countries dependent on remittances?

Hptner says that another reason developing countries can embrace BTC is growing concern about soaring inflation, something that doesn’t weigh on Bitcoin because it has a maximum supply cap of $ 21 million.

“The IMF (International Monetary Fund) forecasts 2021 inflation for developed countries at 2.4%. Its estimate for developing countries is more than double, at 5.4%. While consumers in advanced economies may be better positioned to cope with shocks, people in developing countries are more vulnerable, especially when the price of consumer goods and services is impacted …

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

Finally, Hptner says the decision to adopt BTC as legal tender ultimately rests with political leaders, and El Salvador’s leap of faith made it easier for them to take the plunge.

“At the macro level, those who make the decision to make Bitcoin legal tender will be politicians or leaders. Bitcoin is in many ways a technology, a store of value and a means of payment.

It is also a cultural touchstone and, at its core, an expression of users’ lack of confidence in the global financial system as it is currently constructed …

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

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Featured Image: Shutterstock / Dai Mar Tamarack

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