Bitcoin will be adopted as fiat currency in three more countries in 2022, the CEO of the world’s financial giant predicts.
The ultra-bullish forecast by Nigel Green of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, doubles the forecast made by President El Salvador on Sunday.
Nayib Bukele tweeted a series of predictions about Bitcoin to 3.2 million followers. This includes “two more countries adopting Bitcoin as legal tender”. Among others, cryptocurrencies were to reach $ 100,000 this year.
El Salvador made history in September by becoming the world’s first country to make Bitcoin the official currency alongside the US dollar.
Mr. Green said: “Young and heretic President Nayib Bukele is convinced that it is correct for other countries that adopted Bitcoin as fiat currency in 2022.
“But I’m going even further than he. I believe El Salvador’s pioneering, future-focused digital era lead is likely to be followed by three more countries. . “
He continues. “Low-income countries have long suffered because their currencies are weak and very vulnerable to market changes, which causes rapid inflation.
“This is why most developing countries will rely on major” first world “currencies such as the US dollar to complete transactions.
“But reliance on other countries’ currencies also has its own problems, which are often very costly. For example, the appreciation of the US dollar has caused developing countries to have a significant amount of dollar-denominated debt over the past few decades. As we have undertaken, it will put pressure on the economic outlook for emerging markets. “
The deVere boss adds: “By adopting cryptocurrencies as fiat currencies, these countries can quickly obtain currencies that are unaffected by market conditions within their own economies or directly affected by the economies of other countries.
“Because Bitcoin operates on a global scale, it is affected by broader global economic changes.”
In addition, cryptocurrencies can help “strengthen financial inclusion of individuals and businesses” in developing countries, as they can “avoid bias” in traditional banks and other financial service providers, he said. Says.
Following President Bukele’s bold tweet that more countries will adopt Bitcoin as fiat currency this year, his followers posted their views on which countries they believe are likely to do so. These include Tonga, Turkey and Bolivia, to name a few.
Nigel Green said: “A similar reliance on remittances could allow other countries, such as Panama, Paraguay, Guatemala and Honduras, to adopt Bitcoin, among other factors.
“Shortly after El Salvador was adopted in September, Panama announced a bill to make cryptocurrencies a legal tender domestically, and Senator Gabriel Silva said that this created jobs in Panama and from other countries. Tweeted that it could attract investment in.
“The Paraguayan bill, which is working to regulate the trading and mining of domestic Bitcoin and cryptocurrencies, passed the Senate last month. Is this the first step to making Bitcoin a statutory currency?”
Central banks in Honduras and Guatemala are both targeting digital currencies, officials say, but so far they are taking a different approach.
“They are currently studying the Central Bank Digital Currency (CBDC), which also shows that they are convinced that the future of money is digital.
“But I think they will eventually accept existing cryptocurrencies as fiat currencies, as El Salvador did,” says Nigel Green.
He concludes: “President Bukele is right. Other countries will certainly follow the example of El Salvador and make Bitcoin legal tender in 2022.
“Of course, how many remain unknown, but when that happens, it becomes a snowball effect.”
Three more countries to adopt Bitcoin as fiat currency in 2022?
Source link Three more countries to adopt Bitcoin as fiat currency in 2022?