BitMEX CEO Predicts Bitcoin to Be Legal Tender in Five Countries by 2022
Developing economies are hit the hardest by issues related to remittances and inflation, the BitMEX CEO said.
Developing countries will soon follow in El Salvador’s footsteps and make Bitcoin (BTC) a legal tender, BitMEX CEO Alexander Höptner recently predicted.
In a Wednesday post on his blog, Höptner voiced support for El Salvador’s adoption of Bitcoin as legal tender in September, predicting that developing countries will be “in the lead” in adopting Bitcoin. Bitcoin:
“My prediction is that by the end of next year, we will have at least five countries that accept Bitcoin as legal tender. All of them will be developing countries.”
According to Höptner, developing countries will adopt Bitcoin more quickly due to three main factors: the growing need for cheaper and faster international remittances, massive inflation, and political issues.
Unlike consumers in more developed countries, people in developing economies are more affected by issues related to cross-border payments and inflation, Höptner said.
The CEO noted that remittances accounted for 23% of El Salvador’s gross domestic product in 2020, while the World Bank assessed that low- and middle-income countries receive around 75% of total global remittances. He added that people around the world are increasingly looking to Bitcoin as a solution to weathering massive inflation, citing the rapid crypto adoption in Turkey amid an inflation rate of 19.2%.
Höptner went on to say that El Salvador’s Bitcoin move will make it easier for other countries to consider similar moves. “But if it is a reality that politics will play a large role in the adoption of Bitcoin as legal tender, it is also true that any failure of these leaders in the implementation phase can harm the broader adoption of cryptocurrencies in general.” he added.
A former CEO of the German stock exchange Boerse Stuttgart, Höptner took over as CEO of BitMEX in December 2020, replacing Arthur Hayes.
Höptner isn’t the only one who thinks more countries will follow El Salvador’s lead in adopting Bitcoin. Last month, Cardano founder Charles Hoskinson predicted that many more countries will embrace cryptocurrencies. The world-renowned computer programmer Edward Snowden also believes that “laggards may regret having hesitated.”
Some top figures in the crypto space have been hesitant to praise El Salvador’s adoption of cryptocurrencies, spurred by President Nayib Bukele. On Friday, Ethereum co-founder Vitalik Buterin criticized Bukele’s approach to Bitcoin adoption, arguing that forcing companies to accept a specific cryptocurrency is “contrary to the ideals of freedom that are supposed to be so important to it. crypto space. “
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