Crypto and Bitcoin can offer a solution for inhabitants of unstable countries
Opinions about Bitcoin as a possible legal means of payment are divided in many countries. While some countries, such as El Salvador and Cuba, are adopting Bitcoin as legal currency, others just want to ban Bitcoin completely. After countless bans from China, Turkey is now reportedly looking to do the same.
Bitcoin as a means of payment
The International Monetary Fund (IMF), a specialized agency of the United Nations combating financial crises, does not seem too big of a supporter of Bitcoin. They are asking El Salvador to stop using Bitcoin as a means of payment. Adding that the country’s financial stability, integrity, and consumer safety is at risk.
Still, Bitcoin as a means of payment could provide a way out for unstable countries, many suggest.
El Salvador was the first country that actually dared to make the decision to use Bitcoin, to which the IMF did not react positively. At that time, they immediately halted negotiations on a financial aid package at the time. El Salvador does not seem to care much about this so far. The introduction of Bitcoin in El Salvador has already paid off in various ways. For example, 20 schools and a hospital were built from profits made with the government’s money.
In unstable countries, where there is war, corruption or unstable currency, crypto is on the rise. This is because some cryptocurrencies, like stablecoins, can be a stable alternative for the people in case of a currency collapse. In Turkey, the inflation rate last year was 36%. People would have kept the value of their hard-earned just by putting their money in a stablecoin like USDT or USDC.
It might just be that Bitcoin or cryptocurrencies will be accepted as a means of payment in more and more countries, because there is a need for stability.
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