Bitcoin's hand in positively changing the economic environment for citizens in developing countries is often overlooked in mainstream media. Key countries leading digital currency adoption include China and El Salvador, with many others developing their own plans to follow. As global acceptance of Bitcoin steadily rises, we want to help you stay ahead of the curve in order to best capitalize off of this opportunity.
Currently, large countries are analyzing the development of cryptocurrency as a way to modernize and streamline the ability of their citizens and corporations to exchange monetary value. A notable digital coin expected to challenge the U.S. dollar as the dominant global currency is China's d-RMB, which is a fully digitized currency the Chinese government has recently unveiled.
El Salvador is Ready to Take the First Leap
Smaller nations such as El Salvador, however, also stand to benefit from official country cryptocurrencies. The country has approved a bill that would allow Bitcoin to be legal tender for its citizens. Using an already established and globally reputable cryptocurrency benefits El Salvador when considering adoption rates, as many international companies already accept Bitcoin as payment. The South American nation recently released plans to establish Bitcoin as legal tender on September 7, which would make it the first country in the world to take this leap.
One key benefit of Bitcoin being an official currency is its protection of the country from sanctions set by the U.S. Given that El Salvador’s only legal currency prior to this bill was the U.S. dollar, they were especially vulnerable to external monetary controls. Another reason, shared by President Nayib Bukele is the country’s heavy reliance on expatriates who send money home and Bitcoin’s ability to eliminate the high remittance costs. It will also attract technological investments and offer insulation against inflation. The reasons to adopt Bitcoin as the only truly global currency keep stacking up. With many other countries facing similar challenges and gradually recognizing Bitcoin as the solution, Bitcoin miners are preparing for a boom in the digital currency’s adoption.
Growth in Bitcoin Mining Incentivizes Clean Energy Production
Along with the use of Bitcoin as legal tender, the nation also has plans to set up powerful geothermal mining facilities powered by one of the country's volcanos. The energy gained from this facility will be “very cheap, 100% clean, 100% renewable, [and create] 0 emissions” tweeted Bukele. This heavy investment into the coin showcases the trust the government has in Bitcoin being the standard global digital currency moving forward. With rampant environmental concerns regarding Bitcoin’s energy consumption, El Salvador is poised to prove it can be done sustainably while still being cost effective.
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Benefits for Citizens of Developing Countries and their Families Abroad
Many nations in the developing world could follow suit to help their citizens in reducing remittance fees. It is common practice for people to move abroad and send money back to their home country, but they are often faced with high fees and commissions. The national adoption of Bitcoin in the developing world could help drive wealth creation and economic development.
With the immense amount of unlocked and unbanked potential present in many developing countries across Africa, Asia and South America, the adoption of Bitcoin as a recognized currency in their respective countries could cultivate not only massive economic growth for those countries, but also greater adoption of Bitcoin as a whole. New crypto-based startups like Kenya’s BitPesa are emerging in these countries to adapt to the needs of the local residents, often solving the issues of unstable currency or high remittance fees.
With more national and private industry adoption on the way, Bitcoin mining operations will continue to become a more readily accepted opportunity for wealth creation. Offering mining equipment, hosting & management, and access to a mining pool, Wattum can be your end-to-end guide as you explore the ever-expanding crypto mining landscape.