While crypto investors are becoming more skeptical and fearful because of the current depreciating levels of crypto, Nigel Green, CEO, and Founder of one of the world’s largest independent financial advisory, asset management, and fintech organizations, deVere Group is confident that the future of money is becoming a global changing venture.
He remarks that the adoption of bitcoin as legal tender in the Central African Republic is exciting and a good sign for Africa’s development. As a man who has already dipped his toes into the crypto industry, he emphasizes that crypto has the power to change a better tomorrow.
Nigel Green comments: “We can expect an increasing number of countries to follow the example of El Salvador and now the Central African Republic and adopt Bitcoin as legal tender. In January I predicted that at least another three nations, besides El Salvador, would declare the world’s largest cryptocurrency legal tender in 2022. One now has already done so. I’m doubling down on this prediction. There’s a real sense that momentum is picking up. I expect Bitcoin will be adopted as legal tender in at least one more African and one Central or Latin American country before the end of the year,” he said.
“In Africa, we believe Tanzania could be one of those countries. Its central bank said last year it was working on a presidential directive to prepare for cryptocurrencies. In Latin and Central America, it could potentially be Paraguay or Mexico next,” he added.
This has the potential to improve situations where low-income countries have long suffered because their currencies are weak and particularly exposed to market fluctuations, resulting in high inflation.
This is why most poor countries rely on big ‘first-world’ currencies to execute transactions, such as the US dollar. However, relying on another country’s currency has its own set of issues, which can be quite costly. Because developing countries have taken on so much dollar and euro-denominated debt in recent decades, a stronger dollar or euro will weigh on emerging-market economic prospects.
“Adopting bitcoin is currently more tempting to those countries with a track record of financial instability. These countries will have a currency that is not influenced by market conditions within their own economy, nor by the economy of just one other country if they accept bitcoin as legal money.” The deVere CEO continues.