Since officially adopting Bitcoin as a legal tender on September 7th, 2021, several countries have reportedly been exploring the merits of launching their own digital currency, with many others looking to follow suit.
Although nothing has been officially announced, the President of El Salvador, Nayib Bukele, believes that as many as three more countries could adopt Bitcoin as a legal tender in 2022.
In his January 1st tweet, President Bukele shared six predictions relating to Bitcoin in 2022 to his 3.2 million followers. Nigel Green of deVere Group, a global financial advisory and FinTech organization, believes that Bukele’s prediction could come to fruition in 2022.
According to Green, low-income countries that have suffered rampant inflation due to weak currencies are more likely to take up another country’s currency as a legal tender.
He further explained that by adopting Bitcoin as a legal tender, these countries would receive a currency that isn’t influenced by another country’s economy or even their own.
Green asserts that Panama, Paraguay, Guatemala, and Honduras are potential candidates for adopting bitcoin as a legal tender, due to their similar reliance on remittances.
The CEO of crypto exchange Bitmex, Alex Hoeptner, has also predicted that up to five countries could turn to bitcoin as legal tender in 2022. However, he also appended that “all of them will be developing countries.”
On the Flipside
- The El Salvadorian president has been criticized by many, including the International Monetary Fund for the “Bitcoin experiment.”
Why You Should Care
The narrative around Bitcoin is steadily changing; from a digital asset hyped for its quick gains, to one that could possibly change the fortunes of a nation.