In early June, El Salvador passed a law stating that Bitcoin, can be used as legal tender. At the same time, many other Latin American countries have turned their eyes towards the king of cryptocurrencies in the wake of this very exotic country. So, we will explain what this is caused by and who exactly would like to see Bitcoin in the same role, in more countries.
The economic crisis of South American countries
It is a well-known fact today that South America is not the most economically developed region in the world. Among the many countries where life is quite hard, for many years we have seen Venezuela, whose currency is regularly and drastically losing value. Although other countries in the region are not facing such devastating problems, their economies also leave much to be desired. Argentina has declared bankruptcy several times in the last century, and is once again facing this kind of threat today. Brazil, which until recently was one of the fastest growing economies, is also experiencing a significant crisis. Citizens of these countries have recognized the problem, and as a result have been looking for a solution for years to protect themselves from the worst case scenario. Interestingly, Statista conducted a survey on global cryptocurrency users back in 2019. There were as many as 5 countries from the Americas region in the top 10. And these were Brazil, Argentina, Mexico, Chile, and Colombia. It is also interesting to note that this list was closed by countries such as the United States, France, and Australia. Are Bitcoin investors from poorer countries seeing something that citizens of richer countries have not?
South American politicians favouring Bitcoin
Shortly after the announcement of Salvadoran President Nayiba Bukele, voices from other countries in the region began to circulate around the world. One of the most clearly heard became Congressman and Deputy President of Paraguay Carlitos Rejala. He called on Paraguay on Twitter to go after the new generation. In doing so, he suggested that Paraguay start working on an innovative project. By changing his profile picture, putting laser eyes on it (a symbol of following technology and a declaration of support for Bitcoin) and tagging Bitcoin, Rejala made it clear in which direction he wanted to go.
We didn’t have to wait long for another significant statement. This time it came from Panamanian Congressman Gabriel Silva. He commented on the Salvadoran president’s decision as very important to point out that Panama cannot be left behind. His country, wanting to be a center of technology and entrepreneurship, must support cryptocurrencies. Finally, he added that he will co-write the proposal that will be presented to the Panamanian assembly.
Similar moves have come from politicians in Brazil and Argentina. Although they seem somewhat less decisive, they are worth noting. Fabio Ostermann, an MP for the Rio Grande do Sul region of Brazil, tweeted a photo with laser eyes, as did Carlitos Rejala of Panama. Gilson Marques, who is a federal deputy of Brazil, did the same. In Argentina, on the other hand, the deputy of the city of Neuquen, Argentina, came to the fore and, in line with his predecessors, also changed his profile picture, adding the words “I can’t believe it, but that’s the way it is.”
There are many indications that El Salvador’s actions are having a significant impact on countries in the region. We will be keeping a close eye on these politicians and their influence on decisions in the countries where they hold office.
It is worth noting that similar declarations are coming from other regions of the world, such as Mexico and Tanzania. Are we on the threshold of a financial revolution? Soon everything will turn out. Without a doubt it can be said that Bitcoin adoption is entering a much higher level.