Countries in the developing world will soon follow El Salvador’s moves and make Bitcoin (BTC) legal tender, BitMEX CEO Alexander Höptner recently foretold.
In an Oct. 6 blog post, Höptner showed support for El Salvador adopting Bitcoin as legal tender in September. This foretold that developing countries would be leading the way in Bitcoin adoption.
According to Höptner, developing countries will choose Bitcoin faster because of three significant factors. Firstly, the increasing need for more affordable and quicker international remittances. Second, the colossal inflation. And finally, political problems.
People in developing economies are more influenced by cross-border payments and inflation issues, Höptner stated.
The CEO remarked that remittances delivered up 23% of El Salvador’s gross domestic product in 2020. The World Bank estimated that low and middle-income countries experience around 75% of entire global remittances. He replied that people worldwide are frequently looking at Bitcoin to answer massive weather inflation. Hence, he quoted fast crypto adoption in Turkey amid a 19.2% inflation rate.
El Salvador Started the Trend
Höptner went on to state that El Salvador’s Bitcoin move will make it more comfortable for other countries to examine similar actions. But suppose it’s a reality that politics will play a significant role in adopting Bitcoin as legal tender. In that situation, it’s also true that any defects by these leaders in the implementation phase may damage the broader adoption of cryptocurrencies in general, he added.
A previous CEO of German stock exchange Borse Stuttgart, Höptner, took over as CEO of BitMEX in December 2020, succeeding Arthur Hayes.
Höptner is not only in believing that more countries will support El Salvador’s lead in using Bitcoin. Last month, Cardano founder Charles Hoskinson prognosticated that a lot more countries embrace cryptocurrencies. World-known computer programmer Edward Snowden also thinks that latecomers may repent hesitating.
Some prominent figures in the cryptocurrency space have been reluctant to praise El Salvador’s crypto adoption, sparked by President Nayib Bukele. On Oct. 8, Ethereum co-founder Vitalik Buterin reprimanded Bukele’s approach to utilizing Bitcoin. They discussed forcing businesses to accept a specific cryptocurrency instead of the models of freedom that should be essential to the crypto space.