Hello HODLers,
I had this idea after reading an article where BitMEX's CEO predicts Bitcoin will be legal tender in 5 countries by 2022.
And I just thought about it before even reading the article. After a few seconds, I just thought this was a no-brainer for countries being dollarized as with speak.
Dollarization is the process of a country using dollar as its own currency even if it has no influcence over the US central bank policy.
It is used by countries with weak/corrupted governments where citizens do not trust their own government. It is also used to prevent a weak currency to be attacked and to prevent hyperinflation.
Both of these points were reasons why El Salvador was a country using dollars as its own currency. We have other examples such as Macedonia (well Northern Macedonia now) using euros, etc...
Let's look at the different the countries using dollar as their own currency:
Source: World Bank
Well, I guess you spoted our dear El Salvador. These countries use USD officially but in many others, the people use dollar in day to day life even if the state did not make it "legal tender".
Countries like Argentina, Turkey are good examples where you can buy literraly everything with USD.
I would expect financially advanced countries such as Panama, US Virgin Islands to try passing such law very soon.
El Salvador Bitcoinization is working
I was surprised how smooth was the Bitcoinization of an entire country ! Of course some people took advantage of the process and there were small bugs but overall it went well.
This will help other countries to jump in and folloz EL Salvador's lead.
So, who is taking the other side of this bet :D ?