BitMEX chief executive officer (CEO) Alexander Höptner predicts that more countries around the world will follow the example of El Salvador in adopting Bitcoin as a form of legal tender.
In a recent blog post, the CEO of crypto trading platform BitMEX said countries faced with an “inherently unequal financial system” would be more willing to turn their back on the status quo in favor of alternatives such as Bitcoin.
Höptner lauded El Salvador for adopting Bitcoin as legal tender, despite the backlash by the World Bank and certain financial media outlets, including a Wall Street Journal columnist calling the decision “a scam.”
What the critics fail to recognise is that developing countries like El Salvador are leading the world in embracing decentralised digital currencies and payments. They’ve had decades to analyse how the global financial system works – and doesn’t work – for their populations. They acknowledge their powerlessness to influence monetary policy decisions that can have grave consequences on their citizens.
The Bitmex CEO said countries in support of Bitcoin were not necessarily opting out of the current monetary system, but rather choosing to try something new. Höptner said the decision to pursue novelty should be supported with praise rather than derision.
Höptner went on to predict that at least five more countries would accept Bitcoin as legal tender by the end of next year, saying developing countries will “jump into crypto in 2022.” He highlighted the importance of crypto in providing cheaper and more efficient remittance for developing countries, particularly citizens working abroad looking to send money home to their families.
Höptner also noted the very real impact of inflation — money printing memes aside — and said COVID-19 related stimulus was driving concerns about runaway inflation.
According to Höptner, the IMF forecast for inflation in developing countries is more than double that of developed nations (5.4% vs 2.4%). The BitMEX chief stated that inflation would lead individuals to seek out fiat alternatives regardless of the actions of their governments.
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