InstaForex

October 11, 2021

5 Countries Will Accept Bitcoin (BTC) As A Legal Tender, Just Like El Salvador

 The CEO of the cryptocurrency exchange, Bitmex predicts 2022 will be the highest year recorded the adoption of Bitcoin (BTC) into the economies of several countries.


According to Alex Hoeptner, at least five developing countries will accept Bitcoin as a legal tender next year.



Here are the factors to his prediction:


Remittances / money transfers

Records reveal remittances accounted for 23% of El Salvador’s gross domestic product (GDP) in 2020.

Data from the World Bank in 2020:

Low- and middle-income countries receive about 75% of remittances worldwide.

$ 540 in remittances sent to low- and middle -income countries.

The Western Union -led remittance system incurs a service charge of 10% and the use of blockchain is a solution with much lower charges.

Inflation

The International Monetary Fund (IMF) predicts inflation for developed and developing countries in 2021 to be at 4% and 5.4% respectively.

The inflation crisis is pushing for crypto alternatives

Turkey: Inflation rose more than 15% this year and also recorded an increase in the adoption of cryptocurrencies. After Turkey restricted the use of crypto for goods and services, inflation rose sharply to 19.25%.

Politics

In the future, when El Salvador is still struggling with the difficulty of accepting Bitcoin across the country, politicians will start to think logically and will start supporting Nayib Bukele’s actions.

"What El Salvador is doing today is actually making it easier for other countries to consider Bitcoin." - Hoeptner.

It should be noted, however, that if these leaders fail in this launch, it may become increasingly difficult to implement cryptocurrencies.

At the time of writing Bitcoin recorded a value of $ 56,772 with an increase of over 2% in 24 hours.