El Salvador adopted Bitcoin to test a more functional alternative to the present financial environment, according to a statement from the crypto veteran.
El Salvador’s decision to adopt Bitcoin as one of its legal tenders, according to Alexander Höptner, Chief Executive Officer of derivatives trading platform BitMEX, “deserves praise, not derision” from global monetary heavyweights. , “deserves praise, not derision” from global monetary heavyweights.
According to a message from the crypto veteran, El Salvador‘s Bitcoin move was motivated by a desire to try a more functional alternative to the current financial ecosystem.
“How the global financial system works – and doesn’t work – for their populations,” Höptner said, adding that “they acknowledge their powerlessness to influence monetary policy decisions that can have grave consequences on their citizens.”
He believes that because of their powerlessness, many of the countries in this category will be willing to try new things, including Bitcoin.
By the end of 2022, Höptner believes that as many as five developing countries will have followed El Salvador in adopting Bitcoin as legal tender.
Factors Influencing Bitcoin Adoption in Developing Countries
One of the primary reasons why developing countries will embrace BTC as an official currency in the coming months, according to Höptner, will be the need to power a cheaper remittance. El Salvador’s adoption of cryptocurrency, he said, will serve as a learning experience for other countries.
Sending money home is typically unsustainable with the current financial payment service providers, who delay transactions while charging exorbitant fees, he said, citing human capital as the primary resource for these countries.
Höptner believes that, due to Bitcoin’s fast speed and low fees, more countries will be willing to try out these alternatives in the near future.
The BitMEX CEO also stated that the need to protect fiat currencies from inflation, as well as the desire for political leaders to leave their mark on history, will drive the emergence of laws that will legalise Bitcoin in developing countries.
Overall, Höptner’s message concluded by chastising those who criticise countries like El Salvador while profiting from the financial system.
