After El Salvador’s adoption of Bitcoin, many countries began to consider making the asset their national currency. El Salvador’s decision has raised expectations that national adoption of Bitcoin could accelerate significantly in the coming years. Alexander Höptner, CEO of BitMEX, recently expressed his thoughts on the matter. Höptner made his prediction even more specific by saying that at least five countries will make Bitcoin legal currency in 2022.
In a blog post, the famous CEO explained the rationale behind his prediction, referring to the fact that developing countries would benefit most from adoption. He determined that citizens working abroad should send money to family members in need, hence the importance of Bitcoin becoming legal currency in these countries.
“This money has to find its way home somehow. However, the current remittance system, run by money service providers like Western Union, scams people by charging an average of 10 percent to send money home the next business day. This is sad and wrong. People deserve better.”
Alongside this, Höptner insisted that Nayib Bukele from El Salvador should be commended, whose decision to make Bitcoin the national currency was fiercely criticized. Another remarkable point Höptner made was that even if governments didn’t take the initiative and didn’t consider Bitcoin, citizens would still find an alternative to fiat currencies in times of inflation.
Currently, countries like Brazil are starting to consider making Bitcoin a national currency. Tonga, a small island in Australia, is also considering the possibilities. Höptner expressed the prediction in these words:
“My guess is that by the end of next year we will have at least five countries that accept Bitcoin as an official currency. All will be developing countries. […] I think developing countries will jump into crypto in 2022.”
The BitMEX CEO also argues that although he insists that Bitcoin is more than just a means of payment, the policy may affect future general acceptance.
“[…] If it is a fact that politics will play a large role in the adoption of Bitcoin as legal tender, it is also true that the failures of these leaders in the implementation phase could hurt the wider adoption of cryptocurrencies in general. This is the dangerous dilemma ahead.”
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.