Coinbase CEO Brian Armstrong tweeted that BTC may be the “right long-term bet” for the two South American countries currently seeking a common currency.
As Brazil and Argentina began preparatory work for a common currency, Coinbase CEO Brian Armstrong supported the idea that both countries will switch to Bitcoin BTC ($22,905). This sparked various discussions about the potential of BTC as a national currency.
On January 22, the two countries in South America announced that they are preparing to negotiate a common currency with the Argentine peso and the Brazilian real. This movement could create the second-largest income in the world.
After the news broke, Armstrong took to twitter to suggest that BTC might be the right choice for the project. The CEO of Coinbase described BTC as a “good long-term bet” and wondered if the two countries would consider it.
Global Macro Investor CEO Raoul Pal disagrees. According to Pal, having a national income that “depends 65% on the lower part of the business cycle and rises 10 times in the upper cycle” is not good. The director of the company said that it will be difficult for the company to organize and prevent this situation. A few community members supported Pal’s idea and opposed Armstrong’s idea. According to one Twitter user, the only thing BTC is used for is a store of value like gold. Meanwhile, a Twitter user raised the speed of transactions on the BTC network and said that it will take a long time to get BTC for daily use. However, this was immediately confirmed by another member of the community who argued that in the Bitcoin Lightning Network, BTC is becoming “the best exchange”.
Armstrong’s proposal may be based on El Salvador, another Latin American country, accepting BTC as a legal tender in 2021. This decision has brought various benefits to the country, such as an increase in tourism in 2022, where 1.1 million people visited the country. In addition, El Salvador can build a school and a veterinary hospital with the profits from the purchase of Bitcoin. Brazil and Argentina are no strangers to digital assets.
On Nov. 29, the Brazilian Chamber of Deputies approved a law that legalized crypto as a payment system in the country. The country’s president signed the bill in December, and it is expected to take effect in June 2023. Although the new law recognizes crypto as a means of payment, it does not make it legal for any crypto in the country.
On Dec. 16, a local government in Argentina approved a policy to issue coins directly to the US dollar. This scholarship will be available to those over 18 years of age and will be 100% funded by local funds.
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