The Growing Trend of Countries Adopting Cryptocurrencies

While crypto asset prices have been in a downtrend for over a year now, crypto adoption is still taking place worldwide, including at a state level.

El Salvador was the first country worldwide to make Bitcoin legal tender in 2021 but El Salvador is a small country of only 6.5 million people. We’re now starting to see large countries such as Brazil and Russia discussing cryptocurrency frameworks and regulations to encourage the proper usage of cryptocurrencies and blockchain technology.

Brazil Adoption

Last week, Brazilian regulators approved a new framework for the trading and use of cryptocurrencies in Brazil.

The new rules recognize Bitcoin as a digital representation of value that can be used as a means of payment and an investment asset in the South American country.

A new bill is awaiting the President’s signature before becoming law, it does not yet make any cryptocurrency legal tender in the country. The bill applies broadly to a broad area of assets termed “virtual assets,” Bitcoin and any other cryptocurrency fall under its purview.

Home to a growing cryptocurrency economy, Brazil has reportedly seen citizens trade cryptocurrencies more often than they invest in stocks.[1]

Russia Showing a Positive Stance on Crypto

A recent statement from the Russian bank, Sber, reveals that it will be integrating support for Ethereum and Metamask on its blockchain platform. As is noted in the statement on November 30, there are opportunities for Sber’s project to thrive when attached to the Ethereum network. For example, providing smart contract capabilities and other applications built on the Ethereum platform. Furthermore, integration with the Ethereum network would provide developers with an easier way of creating projects that span both blockchains while opening new doors of opportunity.[2]

Even the Russian President, Vladimir Putin, has sounded positive when it comes to the technology behind blockchain and cryptocurrencies. In an interview on 24/11/2022, the Russian President stated

“It is possible to create a new system of international payments based on digital currency technologies and distributed registries, much more convenient, but at the same time completely safe for participants and independent of banks and third-party interference,” 

“The current international payment system is expensive, and its correspondent account system and regulation are controlled by a small group of states and financial companies,” [3]

Potential of BRICS Adopting Crypto 

With all of the positive crypto sentiment coming from the authorities in Brazil and Russia, it makes one wonder if other BRICS nations will welcome crypto adoption. It would make sense for these nations to create some form of centralized blockchain with their own cryptocurrency to create less reliance on the US dollar.

The BRICS is an alliance of the five major emerging economies in the world: Brazil, Russia, India, China, and South Africa. These 5 countries alone account for 41% of the world’s total population and have a combined GDP of over $24.4 trillion.

Putin has already stated “BRICS basket-based international reserve currency under consideration”

“The matter of creating the international reserve currency based on the basket of currencies of our countries is under review,” [4]

Criticisms of Adoption and Regulations

Even though stringent crypto regulations and a regulatory framework would provide confidence for big money players to invest in the market, many retail investors still fear regulation. 

Regulation does go against the true decentralized peer-to-peer nature found in the original BTC whitepaper but has crypto now gone beyond what was first laid out in the BTC whitepaper more than 10 years ago?[5] 

Hector Lopez said on Twitter says that the BTC network couldn’t handle the load of a large country like Brazil making everyday transactions in BTC. Doesn’t the BTC Lightning Network solves this?

Stephanie Link provided a pretty resounding no on crypto until regulation comes in

Bank of America sound bullish on regulation

What are your thoughts on crypto regulation and which country will be next to make BTC legal tender? Let us know below. 

Written by JayXBT

Sources [1] [2] [3] [4] [5]

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