The CEO of the Bitcoin exchange predicts that by the end of 2022, at least five countries will accept bitcoin as legal tender. He cites three main reasons for this prediction, and believes that developing countries will welcome the technology.
“Alex Hoptener”, CEO of Bitmax cryptocurrency exchange P.یشبینی کرد That developing countries are the flagship of bitcoin acceptance. “I expect at least five countries to accept bitcoin as their legal tender by the end of next year,” he said. “They will all be developing countries.”
Hoptener says developing countries are joining the bitcoin train for three reasons. The first issue is foreign exchange remittances. Remittances accounted for 23% of El Salvador’s gross domestic product last year. Citing data from the World Bank, he says low- and middle-income countries receive about 75 percent of global foreign exchange remittances. In 2020, about $ 540 billion in foreign exchange remittances were sent to these countries.
“This money has to go home somehow,” says the CEO of Bitmax. “Current currency remittance systems, including the Western Union system, charge an average of 10 percent of users for remittances the next business day.” The second issue is inflation. The International Monetary Fund (IMF) predicts that the average inflation of developing countries in 2021 will be between 2.4 and 5.4 percent.
Hoptener says people will look for alternatives to Fiat currencies in times of inflation. He recalls that with the 15% inflation in Turkey, the popularity of the cryptocurrency market increased significantly. The third issue goes back to politics. Many politicians are experts and technicians and like to show themselves to be progressive and forward-looking.
Next year, more politicians will follow in the footsteps of the President of El Salvador. “What El Salvador did was the first credible step in the cryptocurrency market and made it easier for other countries to make similar decisions,” says Hoptener. However, he warned that any failure by these politicians could damage the overall acceptance of cryptocurrencies around the world.