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Which African and Latin American Countries Will Adopt Bitcoin As Legal Tender Next?

Bitcoin will become legal tender in at least one more African and one Central or Latin American country in 2022, predicts the CEO and founder of one of the world’s largest independent financial advisory, wealth management and fintech organizations.

The prediction by deVere Group’s Nigel Green comes as the Central African Republic (ZAR) adopted Bitcoin as its official currency on Wednesday, becoming the first country in Africa and only the second in the world to do so.

A bill regulating the use of cryptocurrency was unanimously approved by parliament last week, according to a statement signed by Obed Namsio, chief of staff to President Faustin-Archange Touadera.

Speaking to Reuters, he said: “The President supports this law because it will improve the living conditions of Central African citizens. He added: “It is a crucial step in opening up new opportunities for our country.”

The Central African Republic is one of six Central African countries that share the CFA franc – a regional currency backed by France and pegged to the euro.

Last year, El Salvador became the first country in the world to adopt bitcoin as legal tender alongside the US dollar.

Nigel Green comments: “We can expect more and more countries to follow the example of El Salvador and now the Central African Republic and adopt Bitcoin as legal tender.

“In January, I predicted that at least three other nations besides El Salvador would declare the world’s largest cryptocurrency legal tender in 2022. One has already done so.

“I double down on that prediction. There’s a real sense of momentum dropping.

“I expect Bitcoin to become legal tender in at least one more African and one Central or Latin American country before the end of the year.”

He continues: “In Africa, we believe that Tanzania could be one of those countries. The central bank said last year it was working on a presidential policy on cryptocurrency readiness.

“In Latin and Central America it could be Paraguay or Mexico next.

“A Paraguayan bill designed to regulate the trading and mining of bitcoin and cryptocurrencies in the country passed the Senate in December in what is widely seen as the first step in making bitcoin legal tender.

“Meanwhile, I am confident that a bitcoin law will be presented to the Mexican Congress this year. Among other things, Indira Kempis — a high-profile Mexican senator — says she wants her country to follow El Salvador’s lead.”

Low-income countries have long suffered because their currencies are weak and extremely vulnerable to market shifts, triggering runaway inflation.

For this reason, most developing countries rely on major “first world” currencies such as the US dollar to process transactions.

However, trusting another country’s currency also brings its own problems, often very costly. A stronger US dollar or euro, for example, will weigh on the economic prospects of emerging markets as developing countries have taken on so much dollar and euro debt over the last few decades.”

The deVere CEO adds: “Currency adoption is currently more attractive to countries with a track record of financial instability. By adopting cryptocurrency as legal tender, these countries immediately have a currency that is not affected by market conditions in their own economy, nor directly by the economy of another country.”

The deVere CEO summarizes: “In countries where current national currencies are not functioning as well as they should as a medium of exchange, store of value and unit of account; where there is unpredictable inflation and an inefficient, outdated and costly financial system; and where GDP relies on remittances from abroad, bitcoin is increasingly seen as the answer.

“First El Salvador, now the Central African Republic – and this is just the beginning. The pace of national adoption will now increase on a global scale.”

https://techround.co.uk/cryptocurrency/which-african-and-latin-american-countries-will-be-next-to-adopt-bitcoin-as-legal-tender/?utm_source=rss&utm_medium=rss&utm_campaign=which-african-and-latin-american-countries-will-be-next-to-adopt-bitcoin-as-legal-tender Which African and Latin American Countries Will Adopt Bitcoin As Legal Tender Next?

Fry Electronics Team

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