According to BitMEX CEO Alexander Hoptner, countries in the developing world will soon follow El Salvador’s lead and legalize Bitcoin (BTC).
Hoptner, in a blog post on Wednesday, expressed support for El Salvador’s adoption of Bitcoin as legal currency in September. He predicted that other developing countries would be “leading” the way in Bitcoin adoption.
“I predict that we will have at least five countries accepting Bitcoin by the end next year.” They will all be developing countries.
Hoptner says that developing countries will adopt Bitcoin more quickly due to three main factors: The growing demand for international remittances at a lower cost and speed, large inflation and political issues.
Hoptner stated that consumers in developed countries are less affected than those in developing economies by inflation and cross-border payments.
According to the CEO, remittances accounted for 23% of El Salvador’s gross domestic product in 2020. The World Bank estimates that 75% of global remittances are sent from low- and medium-income countries. He said that Bitcoin is becoming a popular option to combat massive inflation. This was based on the rapid adoption of crypto in Turkey, which has a 19.2% inflation rate.
Hoptner stated that El Salvador’s Bitcoin decision will make it easier to think of similar moves in other countries. He said that while it is true that politics will play an important role in the adoption and legalization of Bitcoin, it is also true that failures by leaders during the implementation phase could hinder wider adoption of cryptocurrency in general.
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Hoptner, a former CEO of Boerse Stuttgart’s German stock exchange, assumed the role of CEO at BitMEX in December 2020. He replaced Arthur Hayes.
Hoptner isn’t the only one who believes that more countries will adopt Bitcoin as El Salvador has done. Charles Hoskinson, Cardano founder, predicted last month that more countries would adopt cryptocurrency. Edward Snowden, a world-renowned computer programmer, believes that “latecomers might regret not waiting.”
Some prominent figures in cryptocurrency have been reluctant to praise El Salvador’s adoption of crypto by President Nayib Bukele. Vitalik Buterin, co-founder of Ethereum, criticised Bukele’s decision to adopt Bitcoin. He claimed that forcing companies to accept a particular cryptocurrency was “contrary” to the ideals that are so essential to the crypto space.