Fury for Bitcoin: more and more emerging countries want to emulate El Salvador and adopt cryptocurrencies as legal tender

When it comes to cryptocurrencies, financial authorities in emerging countries seem more daring than their counterparts in the developed world.

This is reflected in the fact that in addition to El Salvador’s decision to adopt Bitcoin as a cryptocurrency, other developing countries are considering moving in the same direction.

According to a Business Insider note, politicians, central banks and regulators in the developed world appear to be a bit suspicious, “but those in the emerging world are pushing the boundaries of cryptocurrency adoption by pioneering the use of cryptocurrency. cryptocurrencies., trading and mining of digital tokens ”.

About, these nations “could become the next big cryptocurrency frontier, as a number of politicians from Brazil, Argentina and even Tonga they have publicly stated that they want their countries to follow El Salvador’s lead in making cryptocurrencies legal tender. “

Recall that the Congress of El Salvador approved a law last week making the Central American country the first to accept bitcoin as legal tender, granting it the same legal status as the US dollar in this country.

“Other countries will follow El Salvador’s lead for two main reasons, making bitcoin legal tender will attract Bitcoin entrepreneurs and ease the burden of sending money internationally.”. told Business Insider Edouard Moya, senior market analyst at OANDA.

In this sense, since the President of El Salvador, Check it out First announced the Bitcoin bill, a number of other emerging market politicians said their own countries should follow suit.

In this regard, the Paraguayan deputy Carlitos Réjala tweeted “This week we start with an important project to innovate in Paraguay in front of the world! The real one on the moon #btc & #paypal ”.

As, Gabriel Silva, an MP from Panama, said his country could not afford to be left behind and that wider adoption of cryptocurrencies was needed for the country to attract technological innovation and entrepreneurship.

For its part, Brazilian politician Gilson Marques and Argentinian Francisco Sánchez were among those who added laser eyes, a symbol used by Bitcoin bulls, to their public profile photos.

Central banks around the world are exploring the possibility of launching their own digital currencies, which would be centrally managed and regulated, a key difference from existing cryptocurrencies, such as bitcoin ”. China is a clear example in this regard.

On another side, the United States Federal Reserve and the European Central Bank are still in the early stages of studying a currency while many central banks in emerging markets are making rapid progress in this area.

“Their use in small-scale trading and worker remittances abroad are among the main reasons for the popularity of cryptocurrencies in emerging markets. Central bank digital currencies (CBDCs) could also make it easier to obtain social transfers for the poor and improve the transparency of the large informal economy. These channels could be positive for economic growth in emerging markets, ”noted a recent Bank of America research report.

The popularity and value of cryptocurrencies such as bitcoin and Ethereum have exploded over the past year, but with ups and downs. They are both an asset class in their own right and a means of payment for goods and services. Several sports teams, like the Dallas Mavericks or Oakland A’s, for example, accept cryptocurrencies as a means of payment for tickets or merchandise.

In El Salvador, an entire city was already working with cryptocurrencies: El Zonte, also known as “Playa Bitcoin”. Soon the whole country could function the same, and if some politicians assert their will, according to BI, other emerging countries could follow suit as well.

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