El Salvador on Wednesday became the first country to adopt Bitcoin as its main legal tender – but it won’t be the last, attests the chief executive of one of the world’s leading economic consultancies and fintech organizations.
The forecast from Environmentally Friendly Nigel, chairman and founder of the deVere group, comes as El Salvador’s legislature on Wednesday morning chose to pass an expense that declared Bitcoin, the world’s largest cryptocurrency by market capitalization, as legal tender, according to the Communications Secretariat of the Presidency of the Republic of El Salvador.
He saved 62 votes out of 84.
Mr. Eco-friendly keeps in mind: “El Salvador actually became the first country to adopt Bitcoin as official legal tender, but it certainly won’t be the last.
“Some larger and much more powerful countries are trying to reverse or reduce the inevitable move to international borderless electronic currencies.
“However, this small main American nation adopted the largest of them – Bitcoin – and recognized it as main legal tender.
“El Salvador has made history and also ends up being a true leader in the digital age.
He continues: “Where El Salvador has really led, we can expect other creative nations to follow.
“This is because low-income countries have lasted a long time because their money is low and extremely threatened by market adjustments and this is triggering a widespread increase in the cost of living.
This is why most developing countries come to depend on “first world” money, such as the US dollar, to complete their purchases.
“But reliance on another country’s currency also comes with its own set of problems, often extremely costly. “
A stronger US dollar, for example, will certainly weigh on the economic outlook for emerging markets, given that developing countries have in fact taken on so much dollar-denominated financial debt in recent decades.
The CEO of deVere continues: “By adopting a cryptocurrency as legal tender, these countries then immediately have a currency that is not influenced by market problems in their own economic climate, nor directly by the economic climate of another. country.
“Bitcoin operates globally and is therefore also greatly influenced by larger global economic changes. “
In addition, cryptocurrencies can also help strengthen the financial incorporation of people and businesses in established nations, as they can bypass the prejudices of conventional banks and various other financial providers.
Mr Environmentally Friendly concludes: “There is no doubt that there will be skeptics – probably those based in rich countries – who will certainly strike this daring relocation from El Salvador.
“Still, I think we have to embrace avant-garde technique to solve complex problems. “