The Chief Executive Officer of derivatives trading platform, BitMEX, Alexander Höptner said El Salvador’s decision to adopt Bitcoin as one of its legal tenders is a move that “deserves praise, not derision” from global monetary heavyweights. According to a message from the crypto veteran, the Bitcoin move from El Salvador was born out of the need to try a more working alternative compared to what the current financial ecosystem offers.
Höptner said developing countries have taken decades to analyze “how the global financial system works – and doesn’t work – for their populations,” he said, adding that “they acknowledge their powerlessness to influence monetary policy decisions that can have grave consequences on their citizens.” This powerlessness, he noted, is the reason why many of the nations in this category will be willing to try out new things, Bitcoin inclusive.
Höptner said he believes that as many as five developing countries will trail El Salvador in adopting Bitcoin as their legal tenders by the end of 2022.
Factors that Will Drive Bitcoin Adoption Amongst Developing Countries
According to Höptner, the need to power a cheaper remittance will be one of the primary factors why developing countries will embrace BTC as an official currency in the coming months. He observed that El Salvador’s embrace of the cryptocurrency will serve as a test run for other nations to learn from.
With human capital being the primary resource for these nations, he said, sending money home is typically unsustainable with the current financial payment service providers who delay the transactions while charging humongous fees. With Bitcoin’s fast speed and cheap fees, Höptner believes more countries will be more willing to try out these alternatives in the near future.
The BitMEX boss also pointed out that the need to hedge against the pangs of inflation of fiat currencies and the need for political leaders to score a mark in history will also inspire the emergence of laws that will legalize Bitcoin amongst developing nations.
In all, Höptner concluded his message by reprimanding those who are criticizing nations like El Salvador while also benefiting from the financial system.
“Fear of change is understandable. But it doesn’t have to be crippling. Faced with an inherently unequal financial system, those who have the most to lose by continuing the status quo are acting in their self-interest to explore alternative options like Bitcoin. It would be wrong – and hypocritical – to thumb our noses at them while continuing to benefit from that same unequal system,” he said.