Bitcoin may be recognised as legal tender in yet another country. Which country?
On September 7, 2021, a landmark event occurred for the entire crypto-industry: Bitcoin became official tender at the state level in El Salvador, a small country in Central America. Although such a radical decision has drawn condemnation from many experts and even international organisations, the government of El Salvador has repeatedly claimed fruitful results from the adoption of BTC. It seems that a similar thing could happen to another country.
The state’s example has inspired officials from several other states. Among them is Mexican Senator Indira Kempis. She is now drafting a bill to legalise crypto, which is based on a similar law passed in El Salvador last year. Kempis is also openly calling for the recognition of cryptocurrencies, as it is, in fact, a “historic opportunity” for all countries in the world.
Where is Bitcoin being recognised?
According to Kempis, recognising the major cryptocurrency as legal tender will help the government make a huge contribution to global financial inclusion. According to news outlet Cointelegraph, the senator is expected to submit her bill to the General Congress of the United Mexican States later this year.
Here is a quote from Kempis from her recent interview in which she shares her perspective on what is happening
It is clear to me that financial exclusion is one societal problem that few of us have solved with available alternatives. These technologies in the form of cryptocurrencies and blockchain allow us to create a new alternative so that millions of people can be included in the processes of the global financial system.
Mexican Senator Indira Kempis
Read also: US authorities have called the recognition of Bitcoin as El Salvador's currency a threat to their financial system. Why?
She said the adoption of Bitcoin is a historic opportunity for countries around the world to address inequality-type problems and make financial services accessible to everyone. Here’s a relevant quote.
We need Bitcoin to become legal tender in Mexico, because if we don’t adopt such a solution like El Salvador, it will be very difficult to take action against the problem of financial exclusion.
El Salvador’s President Nayib Buquele
Kempis admires the initiatives of Salvadoran President Nayib Bukele. In her view, he could be at the origin of the Bitcoin revolution, which has the potential to reach every country in the world.
Making Bitcoin legal tender means creating a level playing field for people who are excluded from the financial system in almost all countries.
On topic: Mexico's president has said his country has no plans to legalise Bitcoin. Why?
The growth potential of the crypto market was also highlighted the day before in a report by analysts at Deutsche Bank (DB) titled “The Future of Cryptocurrencies”. The study surveyed 3,250 US consumers in early December 2021, with 680 of them actively using crypto at the moment. From what respondents said, it was found that traders and investors are not ready to part with their savings in crypto even in the event of another prolonged market decline. Here’s how DB analyst Marion Laboure commented.
It’s interesting to note the deep “bullishness” in the crypto market. Less than half of investors said they would sell digital assets during a serious downtrend, when most coin prices would fall by more than 80 percent.
Proportion of respondents willing to increase their investment in crypto
The report divided respondents into three groups: traders, investors and transactors – consumers who actively use credit cards. 80 per cent of all survey participants said they had invested in cryptocurrencies at least once in the past six months. Even in an extremely bear market, less than half of traders, who make up more than 35 per cent of those surveyed, said they would cut back on crypto transactions. In addition, more than 70 per cent of them plan to increase their trading volumes in the next six months.
It is also worth pointing out the fact that the survey started last year, so in part of the lines one can find information that supposedly the pressure of sellers on the market is “not yet too great”. The situation in the cryptosphere is changing very quickly, even in a couple of months, with Bitcoin having fallen in value seriously since December. So investor opinion may now be more negative.
Distribution of respondents by type of employment
Finally, another interesting detail picked up in DB’s publication is that a significant portion of investors do not believe that cryptocurrencies can be considered a “guaranteed means of enrichment”. And that’s a good thing, because market players now have fewer false hopes for digital assets and are paying more attention to exploring their fundamental benefits.
We think this approach by cryptocurrency investors may be the right one. Still, the desire to hold coins for a long time is driven by their historical ability to increase in value over several years. So this plan could work now too - and especially if coins start to be recognised in different countries.
What do you think about this? Share your opinion in our Millionaire Crypto Chat. There we will talk about other topics related to blockchain and decentralisation.
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