2 - 3 minute read
Coinbase CEO Brian Armstrong recently commented on a report by the Financial Times (FT) about Brazil and Argentina starting “preparations for a common currency.” Armstrong believes that these two countries should consider following in the footsteps of El Salvador and making Bitcoin legal tender.
The FT reported that “Brazil and Argentina will this week announce that they are starting preparatory work on a common currency, in a move which could eventually create the world’s second-largest currency bloc.” The report went on to say that the two countries would discuss the plan at a summit in Buenos Aires and invite other Latin American nations to join. The initial focus would be on how a new currency, which Brazil suggests calling the ‘sur’ (south), could boost regional trade and reduce reliance on the US dollar.
In response to this report, Armstrong tweeted, “Brazil and Argentina are considering a common currency, and I think they should also consider moving to Bitcoin.” Armstrong went on to explain that by making Bitcoin legal tender, the countries could avoid some of the inflationary pressures they have faced in the past and provide citizens with an alternative to traditional fiat currency.
El Salvador made history in June 2021 when it passed legislation to make Bitcoin legal tender alongside the U.S. dollar. This was a major milestone for the cryptocurrency and has sparked interest in other countries considering similar measures. Armstrong believes that Brazil and Argentina should take note of El Salvador’s actions and explore the benefits of making Bitcoin legal tender.
It is important to note that Armstrong is not the only one who thinks that Bitcoin can be an alternative to traditional fiat currency. Zap Solutions CEO Jack Mallers, who is a Bitcoin payments startup that uses the Lightning Network, announced at Miami’s Bitcoin 2021 conference that El Salvador’s government wanted to pass legislation to make Bitcoin legal tender. Mallers went on to say that his firm would be opening an innovation center in El Salvador with the help of Blockstream.
It remains to be seen whether Brazil and Argentina will follow in the footsteps of El Salvador and make Bitcoin legal tender. However, Armstrong’s comments highlight the growing interest in Bitcoin as a viable alternative to traditional fiat currency. As the world continues to grapple with inflationary pressures and economic uncertainty, more and more countries may start to explore the benefits of Bitcoin as a store of value and medium of exchange.