What Will Be The Next Country To Make Bitcoin Legal Tender? 5 Potential Candidates
2021 saw the year that Bitcoin truly went mainstream. This is highlighted by the fact that El Salvador because the first country to declare Bitcoin legal tender. The country’s charismatic President Nayib Bukele has even gone as far as to give every Salvadorian citizen $30 in Bitcoin if they download the country Chivo Bitcoin wallet.
That raises the question, “Who will be the next country to adopt Bitcoin as legal tender?” Right now, there are five countries that could substantially benefit from the adoption of Bitcoin. Here’s a look at who could be next on the Bitcoin legal tender list.
What is the Definition of Legal Tender?
Before we get into the list. It is a good idea to understand what exactly legal tender is. The most widely accepted definition of legal tender is a currency that is considered a satisfactory payment of public or private debt. That doesn’t mean that the seller or the creditor has to accept this form of payment. However, the country’s courts will recognize the payment as legal.
1). Paraguay
If you look at Paraguay, then you will find a country that is much like El Salvador. Paraguay is a small Latin American country that has had its economic challenges. They also have a politician who would like to make Bitcoin legal tender. Paraguayan congressman Carlitos Rejala has pledged to make Bitcoin legal tender if he is elected President in the upcoming election.
What are the odds that Paraguay will adopt Bitcoin as legal tender?
The odds are pretty good that Paraguay will make BItcoin legal tender in the next five years if they have Presidential candidates that are pro-Bitcoin. Of course, these odds could go up if we see El Salvador’s GDP rise over the next few years.
2). Panama
Panama is a Central American county whose official currency - the Balboa - is tied to the U.S. dollar. Much like El Salvador, Panama’s sees its native legal tender tied to the U.S. dollar. Adopting Bitcoin as another form of legal tender can help the country gain some economic independence.
What are the odds that Panama will adopt Bitcoin as legal tender?
Panamanian congressman Gabriel Silvia has introduced legislation to make Bitcoin a legal form of payment for civil and commercial operations. This doesn’t officially make Bitcoin legal tender in the country. However, it is a move in the right direction. The fact that Panama and El Salvador have similar economic set-ups makes it likely that Bitcoin could become legal tender in the country.
3). Brazil
Brazil is somewhat different from Parugray and Panama by its sheer size. The large South American country has the 13th largest GDP on the planet. That means that making Bitcoin legal in Brazil will be a big deal. However, the country has had its challenges with the current legal currency, the Real.
What are the odds that Brazil will adopt Bitcoin as legal tender?
Recently, Brazil MP Luizão Goulart submitted a bill to make Bitcoin a legal form of payment for workers in the public and private sectors. So far, the bill has not seen much movement in Brazil’s parlament. However, we could see more proposals come down the line as Bitcoin continues to rise in popularity.
4). Mexico
As support for Bitcoin grows in Latin America, we could see the possibility that Mexico will add the cryptocurrency as legal tender. The country’s current legal tender - the Peso - has historically been weak compared to the U.S. dollar.
What are the odds that Mexico will adopt Bitcoin as legal tender?
The current Mexican President Andrés Manuel López Obrador has ruled out the possibility of Bitcoin being legal tender. However, Mexican lawmaker in the Lower House - Eduardo Murat Hinojosa - has expressed his support in creating a legal framework for crypto coins.
5). Turkey
Perhaps no other country has seen more economic turmoil than Turkey in recent years. The country’s Lira has collapsed by 45% against the U.S. dollar in 2021. Also, we have seen the country go through four central bank chiefs in the last 2 ½ years. With many Turks abaonding the Lira, Bitcoin adoption could make sense.
What are the odds that Turkey will adopt Bitcoin as legal tender?
No very good odds on Turkey following El Salvador. Currently, Bitcoin is illegal in Turkey. However, if the country’s Lira continues to collapse, we could see a political upheval that could remove Turkish strongman Tayyip Erdogan from power. This could open the door for Bitcoin legal adoption in the country.
Bitcoin Looks to Go Even More Mainstream in the Future
Chanes are that El Salvador won’t be the only country to make Bitcoin legal tender. Over the next few years, we could see a “domino effect” where more and more countries accept the top cryptocurrency as legal tender. This could further increase the value of Bitcoin.