Alexander Höptner, chief executive officer (CEO) of BitMEX, believes that other nations will follow El Salvador’s lead and accept Bitcoin as legal currency.
According to a recent blog post by the CEO of cryptocurrency trading platform BitMEX, nations facing an “inherently unfair financial system” would be more inclined to abandon the status quo in favor of alternatives such as Bitcoin.
Höptner praised El Salvador for accepting Bitcoin as legal currency, despite opposition from the World Bank and some financial media sources, including a Wall Street Journal writer who labeled the move a “scam.”
Höptner penned: What opponents overlook is that poor nations like El Salvador are pioneering the use of decentralized digital currencies and payments. They’ve had decades to study how the global financial system works for their people – and how it doesn’t. They recognize their inability to influence monetary policy choices that may have serious repercussions for their people.
According to the Bitmex CEO, nations that embrace Bitcoin are not necessarily opting out of the existing monetary system, but rather are experimenting with something new. Höptner said that the choice to seek innovation should be commended rather than derided.
Höptner continued by predicting that at least five more nations would recognize Bitcoin as legal currency by the end of next year, adding that developing countries will “leap into crypto in 2022.” He emphasized the critical role of cryptocurrency in providing poor nations with more affordable and efficient remittances, especially for people working abroad who want to send money home to their families.
Höptner also highlighted the very real effect of inflation – money printing myths notwithstanding — and said that COVID-19-related stimulus was fueling fears of runaway inflation.
Höptner notes that the IMF forecasts inflation in poor countries to be more than twice that in wealthy ones. According to the BitMEX CEO, inflation would drive people to seek out fiat alternatives regardless of their governments’ actions.
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