Countries That Will Accept Bitcoin as A Legal Tender by The End of This Year
According to Alexander Höptner, remittances, inflation, and economics will all push at least five emerging economies to adopt bitcoin as legal currency by the end of 2022, if not more.
- “Prediction: By the beginning of next year, Bitcoin will be legally accepted as legal currency in at least 5 different nations, according to my calculations. All of them will be developing nations; as stated before, “The CEO of BitMEX published a blog post.
- Following El Salvador’s lead and adopting Bitcoin as legal currency next year, high inflation, high migration costs, and political advantages may encourage economic development to follow suit.
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The recent decision by El Salvador to recognize bitcoin as legal tender alongside the dollar drew some criticism from around the world, but primarily from mainstream outlets like the Financial Times and the Wall Street Journal, as well as world-famous investment firms such as with the Imf (IMF) and the Monetary Fund, and many others.
According to Höptner, “what the detractors fail to recognize is that poor nations like El Salvador are leading the globe in adopting decentralized digital currencies and payments.” “They’ve had decades to study how the global financial system works – and fails to function – for their own people. These governments recognize that they have little ability to influence monetary policy choices that may have serious repercussions for their people.”
In his subsequent remarks, Höptner clarified that declaring bitcoin legal currency, as El Salvador did in September, does not constitute a total abandonment of the existing financial system. Instead, it indicates that nations are searching for options that will better serve their citizens and economies.
It is something to be commended, not mocked, “he said. Developing nations often confront an economic reality that differs significantly from that of industrialized countries. Consequently, the status quo may not be sufficient – alternatives can improve the quality of life for individuals, thus enhancing the overall quality of life in the nation.
Countries that will accept Bitcoin
‘By the end of next year, I anticipate that at least five nations will recognize Bitcoin as legal currency,’ Höptner said. “They will all be underdeveloped nations,” says the author. According to the International Monetary Fund, developing nations will suffer inflation rates more than twice those experienced by industrialized economies this year.
“When confronted with a fundamentally uneven financial system, those who stand to lose the most by maintaining the current quo are acting in their own self-interest by investigating alternative financial systems like as Bitcoin. It would be immoral – and dishonest – to look down our noses at them while continuing to profit from the same unfair system that they are experiencing.”
Some countries, like China and Russia, however, are opposed to the regulation of cryptocurrency trade. It is also possible that governments worldwide are holding off on providing a sovereign backing to this form of currency until the underlying blockchain technology has matured before doing so.
If bitcoin is declared legal tender, businesses will have to accept bitcoin as a payment method in addition to fiat currencies such as the US dollar, the Indian rupee, and so on. Bitcoin, a computer-generated digital currency produced via a process known as “mining,” has seen significant swings in value over the last decade. In April, it achieved its all-time high value of about $65,000 (approximately Rs. 48 lakh at the current exchange rate). However, the profits erased the next month when the stock market crashed. Since then, it has made some progress, but not quite enough to reach its previous high point.
Despite this, many companies, like Tesla CEO Elon Musk, believe that bitcoin has enormous potential. Payments with Bitcoin accept by several companies, including restaurant chains, delivery services, and online shops. Despite this, his business, which manufactures electric vehicles, has changed its plan to accept Bitcoin as a form of payment. More individuals are investing in and trading cryptocurrencies now than there have ever been. We are hopeful that you understood our guide on the latest countries that might accept bitcoin soon.