Both El Salvador and Paraguay have expressed their pro-Bitcoin intentions. Meanwhile, Brazil and Panama have also followed. Which countries are coming next?
The list keeps growing. El Salvador, Brazil, Paraguay, and Panama are moving to # Bitcoin.
Who is next?
— 🅖🅐🅡🅨 🅛🅔🅛🅐🅝🅓 The Bitcoin Boomer (@GaryLeland) June 8, 2021
Which other countries also intend to introduce Bitcoin? More: Why is this happening given the still prevailing reservations of the broad masses about the leading cryptocurrency?
Who follows El Salvador?
The president of El Salvador, Nayib Bukele, dropped the bomb on Saturday: that’s when the head of state declared that he would launch a bill this week to officially introduce Bitcoin as legal tender.
This makes El Salvador the first country to officially use cryptocurrency to attract investment and allow more residents to participate in the formal economy.
This was accompanied by a tweet from Bukele in which he promised a permanent residence permit for crypto entrepreneurs and announced that there would be no capital gains tax on Bitcoin.
1. Great weather, world class surfing beaches, beach front properties for sale.
2. One of the few countries in the world with no property tax.
3. No capital gains tax for # Bitcoin, since it will be a legal currency.
4. Immediate permanent residence for crypto entrepreneurs. https://t.co/j3eugJQCMd
– Nayib Bukele 🇸 🇻 (@nayibbukele) June 6, 2021
Numerous crypto enthusiasts, including Binance CEO Changpeng Zhao, signaled their approval and expressed interest in moving to El Salvador.
According to Bukele, there would be many reasons for his Bitcoin advocacy. But ultimately it boils down to improving economic prosperity and financial inclusion in a country where 70% of people do not have access to banks or credit.
Remarkably, 20% of El Salvador’s GDP comes from money sent home by migrants. This brings with it additional problems with international transfer fees and inefficiencies of banks-because sometimes it takes days for the money to be transferred.
Printing dollars has consequences
Another reason for El Salvador’s bitcoin stance is the US Federal Reserve’s money printing policy, which has been rampant for about a year.
“The US Federal Reserve has dramatically expanded the supply of circulating US dollars as measured by the M2 money supply, from $ 15.35 trillion in February 2020 to $ 20.26 trillion in May 2021, an increase of 32 percent unprecedented in modern peacetime US history. ”
While this has helped ease domestic economic pain, countries like El Salvador have suffered a loss of purchasing power from US monetary inflation.
The Fed is showing no signs of easing its monetary policy. By formally legalizing Bitcoin (buy here at eToro), Bukele hopes to stabilize El Salvador’s economy. According to Bukele, in such circumstances it becomes necessary to allow a private digital currency to mitigate the risks – one that is independent of any control of the Central Bank.
Regarding the question of which country is next to formalize the introduction of Bitcoin: based on the above, that could be any country affected by US currency inflation.
Bitcoin bull Anthony Pompliano, for example, tweeted that Mexican Republic Senator Indira Kempis posted a picture of herself with laser eyes.
A politician from Mexico has now posted a picture with laser eyes.
At this rate, laser eyes are going to take over South and Central America by the end of the week.
(h / t @Jason yanowitz) https://t.co/UXdVV2vPSY
– Pomp 🌪 (@APompliano) June 8, 2021
Based on all the countries that have signaled their pro-bitcoin stance in recent days, BTC seems to have somehow struck a nerve in Latin America.
Text credit: Bitcoinist
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