In a bold forecast for the future of cryptocurrency, Nigel Green, CEO of deVere Group—a prominent global financial advisory and asset management firm—has predicted that three additional countries will adopt Bitcoin as legal tender in 2022. This statement builds on a recent announcement by El Salvador’s President, Nayib Bukele, who hinted at similar developments.
Bitcoin’s Growing Acceptance
El Salvador made history in September 2021 by becoming the first nation to officially recognize Bitcoin alongside the U.S. dollar, marking a significant milestone in the world of digital currencies. In a tweet to his 3.2 million followers, Bukele shared his optimistic outlook on Bitcoin’s future, suggesting that two more countries would follow suit this year, and that the cryptocurrency could reach a staggering value of $100,000.
Green’s Insights on Economic Impact
Green supports Bukele’s predictions, stating, “The young, visionary President is likely correct, but I believe even more countries will embrace Bitcoin as legal tender.” He elaborated on the challenges faced by low-income nations, which often struggle with weak currencies susceptible to market volatility, leading to high inflation rates. This economic instability forces many developing countries to rely heavily on stronger foreign currencies like the U.S. dollar.
However, this reliance on another country’s currency can create additional financial burdens, particularly as the value of the dollar fluctuates. Green notes that adopting Bitcoin could provide these nations with a more stable currency not tied to their own economic conditions or the influence of a single foreign economy. “Bitcoin operates on a global level, making it less susceptible to local economic crises,” he explains.
Financial Inclusion Through Cryptocurrency
Another significant advantage of Bitcoin adoption is its potential to enhance financial inclusion for individuals and businesses in developing regions. By circumventing traditional banking systems, cryptocurrencies can provide access to financial resources that many currently lack. Following Bukele’s announcement, social media users speculated on which countries might follow El Salvador’s lead, with mentions of Tonga, Turkey, and Bolivia emerging as possible candidates.
Countries on the Verge of Adoption
Green pointed to nations such as Panama, Paraguay, Guatemala, and Honduras as likely candidates for Bitcoin adoption due to their similar economic challenges and reliance on remittances. Following El Salvador’s landmark decision, Panama even proposed legislation to recognize Bitcoin as legal tender, with officials suggesting it could create jobs and attract foreign investment.
In Paraguay, a bill aimed at regulating Bitcoin trading and mining recently passed the Senate, signaling a potential shift towards legalization. Meanwhile, both Honduras and Guatemala are exploring digital currency options, although they are currently focused on developing central bank digital currencies (CBDCs). Green believes that these countries will eventually embrace established cryptocurrencies like Bitcoin, following El Salvador’s example.
As the world watches closely, the prospect of Bitcoin’s broader acceptance continues to unfold, with many anticipating a significant shift in the global financial landscape.
