Michael Sonnenshein claims that the populations of emerging nations are anticipating their rulers and increasingly adopting Bitcoin.
According to Michael Sonnenshein, the populations of emerging nations are anticipating their rulers and increasingly adopting Bitcoin. This is because they are losing faith in their traditional financial institutions and are looking for alternatives that will protect their wealth from inflation.
Sonnenshein is the managing director at Grayscale Investments, which is one of the largest asset managers in the cryptocurrency space. He believes that Bitcoin will continue to gain popularity in countries with unstable economies and governments.
He cites examples such as Venezuela, where the government has been printing money to combat hyperinflation, and Zimbabwe, where the central bank has been accused of corruption. In both cases, citizens have turned to Bitcoin as a way to preserve their wealth.
After El Salvador, the next country to adopt Bitcoin (BTC) as a legal tender could be South America, Grayscale CEO Michael Sonnenshein said in an interview with Yahoo Finance on Friday.
Sonnenshein also stated that the adoption of Bitcoin by the population of emerging countries is fundamental for the consolidation of Bitcoin as an alternative to fiat currencies, regardless of concrete government actions in this regard. He added that he believes that soon we will see other countries considering the possibility of following in El Salvador’s footsteps.
“When we look at where adoption rates are taking place, they are highest in emerging markets, in places like Africa, Southeast Asia and parts of South America. But we are certainly seeing a gravitation towards Bitcoin, regardless of government action in some of these countries because many of these citizens do not have access to financial services, or perhaps their local currencies have been degraded or eroded because there has not been sufficient government control over their local monetary policies.”
Grayscale’s CEO predicts that the next country to adopt Bitcoin as its official currency will come from one of these continents, as the will of the population can make governments take concrete steps in this regard. Cuba and Panama are two Central American countries where Bitcoin regulation is under debate.
Recently, the Cointelegraph reported that a survey carried out in Latin American countries revealed a high degree of approval by the population of countries such as Brazil, Argentina, Mexico and Colombia of El Salvador’s Bitcoin Law. In Brazil, 48% of respondents to the survey said they were in favor of adopting Bitcoin as the country’s legal currency.
Bitcoin’s first day as El Salvador’s official currency was marked by an abrupt drop in the market, raising questions about the risks of economic instability that the adoption of a highly volatile currency could inflict on the local population.
Asked about the real viability of Bitcoin as an alternative to state coins issued by central banks given the initial shock of the Salvadoran experience, Sonnenshein made only one reservation: the speed with which the Bitcoin Law was implemented. However, Grayscale’s CEO minimized the short-term effects of natural variations in the crypto market and bet on the success of the venture.