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Bitcoin will be adopted as legal tender in three more countries in 2022, predicts the CEO of a game-changing global financial giant.
Nigel Green’s ultra-bullish prediction of deVere Group, one of the world’s largest independent financial advisory, asset management and fintech organizations, doubles that made by the president of El Salvador on Sunday.
To his 3.2 million followers, Nayib Bukele tweeted a series of predictions about Bitcoin, of which “2 other countries will adopt it as legal tender”. Among the others, the cryptocurrency will hit $ 100,000 this year.
El Salvador made history in September when it became the first country in the world to make Bitcoin an official currency alongside the US dollar.
Mr Green says: “I have no doubts that the young maverick president, Nayib Bukele, is correct that other countries are adopting Bitcoin as legal tender in 2022.
“But I would go even further than him. I think it’s likely that three more countries will follow El Salvador’s pioneering and forward-looking example in the digital age.
He continues: “Low-income countries have suffered for a long time because their currencies are weak and extremely vulnerable to market changes, which trigger skyrocketing inflation.
“This is why most developing countries are becoming dependent on major ‘first world’ currencies, such as the US dollar, for their transactions.
“However, reliance on another country’s currency also comes with its own set of problems, often very costly. A stronger US dollar, for example, will weigh on the economic outlook for emerging markets, as developing countries have taken on so much dollar-denominated debt over the past decades. “
The deVere boss adds, “By adopting cryptocurrency as legal tender, these countries then immediately have a currency that is not influenced by market conditions within their own economy, nor directly from the economy. from another country.
“Bitcoin operates globally and is therefore impacted by broader global economic changes.”
In addition, he notes, cryptocurrencies could also help “strengthen the financial inclusion of individuals and businesses” in developing countries, as they “can bypass the prejudices” of traditional banks and other providers. financial services.
Following President Bukele’s bold tweet about more countries adopting Bitcoin as legal tender this year, his supporters have posted notices on which nations they believe are likely to do so. These included Tonga, Turkey, and Bolivia, to name a few.
For his part, Nigel Green says, “Due to their similar reliance on remittances, among other factors, other countries including Panama, Paraguay, Guatemala and Honduras may also adopt Bitcoin. .
“Right after El Salvador’s adoption in September, Panama announced a bill to make cryptocurrency legal tender in the country. Additionally, Congressman Gabriel Silva tweeted that it could create jobs in Panama and attract investment from other countries.
“A Paraguayan bill to regulate the trading and mining of Bitcoin and cryptocurrencies in the country was passed by the Senate last month. Is this the first step in making Bitcoin legal tender? “
The central banks of Honduras and Guatemala are also considering digital currencies, officials say, but they are – for now – taking a different approach.
“They are currently studying central bank digital currencies (CBDCs). This shows, once again, that they too are convinced that the future of money is digital.
“However, I think they will eventually adopt an existing cryptocurrency as legal tender, as El Salvador did,” said Nigel Green.
He concludes: “President Bukele is right. Other countries will indeed follow El Salvador’s example and make Bitcoin legal tender in 2022.
“How much remains uncertain, of course. But when it does, it will be a snowball effect. “