Big bets and political futures hang in the balance with continued developments in cryptocurrencies. El Salvador’s President Nayib Bukele was the first of South American leaders to take a bold step into the future by calling for the adoption of Bitcoin as legal currency. The next countries expected to follow suit include Paraguay, Panama, Brazil, and Mexico.
South Americans perceive cryptocurrency as an opportunity and insulation against inflation and the reliance on the United States dollar. An added bonus is the potential to further court tech entrepreneurship by adopting crypto.
As The Street explains, what followed the announcement from the El Salvador government “was a flurry of politicians and leaders from across various Latin American countries calling for the same type of action with the same motivation — to reduce the reliance on the dollar, slow inflation, increase financial inclusion and bring in more entrepreneurs.”
Congressman Carlitos Rejala of Paraguay Tweeted a photo of himself with laser eyes noting the need for innovation with the new generation. He noted that the country should use its hydroelectric infrastructure to mine Bitcoin and later presented a bill to make Bitcoin legal tender in Paraguay.
Bitcoin will also increase the wealth of small Latin American countries as they adopt the currency and even purchase Bitcoin with reserves. Not only that, but crypto-businesses will be seeking the greener pastures of crypto-friendly countries that boast lower taxes.
Still, El Salvador’s move was unsettling to some and the dust needs to settle a bit. Markets have been spooked and while some citizens have been posting about making purchases with bitcoin, others are marching in the streets in El Salvador in protest.
Still, what El Salvador President Nayib Bukele is slated to accomplish is grand. He “hopes bitcoin will alleviate El Salvador’s prickliest economic problems: citizens sending money home from abroad account for up to a fifth of the country’s GDP, but they have to pay high transaction costs, and 70 percent of people have no bank account. Bitcoin enables quick, cheap payments across borders, and doesn’t require banks.”
Undeterred by naysayers, President Bukele pointed out the benefits even in the short term include job generation and the ability to provide financial inclusion to thousands outside of the formal economy.
It is ultimately at the heart of what bitcoin and cryptocurrencies have always been about: apolitical wealth development and opportunity for everyone.
In another significant move on a different continent, Ukraine just became the latest country to legally recognize Bitcoin.
“Ukraine is the fifth country in as many weeks to lay down some ground rules for the cryptocurrency market, a sign that governments around the world are realizing that bitcoin is here to stay,” according to CNBC reporting.
The Ukrainian Parliament, via a near-unanimous vote, adopted a law that legalizes and regulates cryptocurrency.
The tide is becoming more favorable to cryptocurrencies as nations recognize that the blockchain has staying power. Some are viewing cryptocurrency with hope and a sense of opportunity, while others – like China – are perceiving a sizable threat to the status quo of which they have become accustomed.
Crypto is gaining traction in international conversation as politicians Tweet photos of themselves with laser eyes, a show of solidarity for bitcoin and a bold push for the future of humanity.