The dedollarization of the world is underway? – This is devastating news that has been ringing in our ears in recent days. Argentina and Brazilthe two most important nations of South America would prepare to work on a common currency, and invite other Latin American countries to join them in this initiative. And if Bitcoin (BTC) was the solution found? Decryption.
South America, future crypto adoption pool?
These two South American nations are far from indifferent to Bitcoin’s value proposition. And more generally cryptos. All the more so since 2022. Indeed, last December, Jair Bolsonaroformer president of Brazil, made payment in cryptocurrencies legal. This does not make Bitcoin legal tender unlike El Salvador. But it is still a first step forward.
As for Argentina, the breathless population has been trapped for years in hyperinflation that is only accelerating over time. So much so that the Argentines, desperate, are more and more numerous to take refuge in stablecoins to escape a peso which is devaluing at high speed. Javier Mileia libertarian running for the country’s presidential elections to be held on October 22, 2023, even said:
“The central bank is a scam. […] It is a mechanism by which politicians deceive good people by imposing a “tax by inflation” on them. […] Bitcoin is the natural reaction against central bank scammers. »
It is therefore not surprising that the two countries are working together to establish a new currency. On the other hand, according to data from World Gold Council, central banks around the world have never bought so much gold since 1967. These unprecedented measures could well be linked to a desire by governments to protect themselves from the hegemony of the dollar. Banks around the world could even be preparing “for unprecedented times monetary devastation “.
As that bleak future looms on the horizon, this digital gold, called Bitcoin and its quantity limited to 21 million unitscould well act as a lifeline for many individuals.
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Bitcoin, candidate for the monetary election according to Coinbase?
In any case, this is the opinion shared on Twitter by Brian Armstrongthe boss of the exchange Coinbase. This invites the two nations of Brazil and Argentina to think about the Bitcoin option.
Of course, the subject has always been thehotly debated. Some indicating that an asset falling by 70% in the bear market and multiplying its price by 10 during bull runs would make management impossible and cannot act as money. Against this is a most obvious argument. The more the capitalization of Bitcoin will be great, the less the variations of its course will be important. And in fact, the more stable it will be. At identical capitalizations, gold and Bitcoin will fluctuate in the same way. The current volatility is therefore only temporary.
Others imply that the Bitcoin network would be too slow and the fees too high to serve as a global transaction network. Again, pro-bitcoins respond: Lightning Network. A second layer network of bitcoin, instantaneous and without fees which is the ideal medium for microtransactions.
Who will be the next country to adopt Bitcoin as legal tender? Will there even be a second one one day? Only the future will tell us. Until then, no doubt we will be dealing with heated debates while this new UFO called Bitcoin tries to make a place for itself at the heart of our society.
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