BitMEX CEO Alexander Höptner has supported the President of El Salvador’s decision to legalize bitcoin and believes other developing countries will soon follow suit.
El Salvador became the first country to recognize Bitcoin as legal tender. However, this decision was not approved by everyone. When the El Salvadorian government approached the World Bank for help integrating bitcoin into the country’s monetary system, it was rejected due to environmental issues that may arise when mining BTC, as well as difficulties in ensuring the transparency of payments. In its
article, published on the BitMEX blog, Höptner was outraged by the media reaction to the legalization of bitcoin in El Salvador. For example, Moody’s downgraded the country’s rating, the Financial Times called the adoption of bitcoin a “dangerous game”, and the Wall Street Journal called it “a scam.”
Bitcoin critics still don’t understand that developing countries like El Salvador are leading the way in adopting digital currencies, according to the head of BitMEX. They do not abandon the traditional monetary system and continue to use the US dollar, but they are open to innovation. Höptner thinks this is commendable. He suggested that by the end of next year, bitcoin will become legal tender in at least five developing countries. While El Salvador will tackle the problems that have arisen in the introduction of bitcoin into the country’s economy, forward-looking politicians in other countries will follow the example of El Salvador. El Salvador took the first steps, “paved the way”, and now it will be easier for other countries to decide what further steps need to be taken to legitimize bitcoin, Hoettner is sure.
According to the head of BitMEX, with the help of bitcoin it will be easier to make money transfers abroad, as well as pay for goods and services. The existing money transfer systems “rip off” people, charging them an average commission of 10%, while the money, as a rule, is sent to the recipient only the next day, the head of BitMEX was indignant.
“This is heartbreaking and wrong. People deserve the best. Unsurprisingly, with its meager fees and fast transactions, Bitcoin, which operates 24 hours a day, 365 days a year, is of great interest to countries where money transfers are popular, ”said Hoeptner.
Inflation and money printing also play an important role in the spread of bitcoin. According to estimates by the International Monetary Fund (IMF), inflation in developed countries in 2021 will be 2.4%, while in developing countries this figure will be twice as high – about 5.4%. Given that Bitcoin’s supply is limited to 21 million coins, people see it as an effective store of value.
Cardano founder Charles Hoskinson is of the same opinion as Hoeptner. Hoskinson is convinced that cryptocurrencies will become an integral part of various government structures in the coming years.
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