Brazil and Argentina Mull Adopting Bitcoin for Regional Trade
• Brazil and Argentina are considering creating a new currency called the ‚Sur‘ to boost regional trade and reduce reliance on the US dollar.
• Bitcoiners have suggested adopting Bitcoin (BTC) as legal tender instead of creating a new currency.
• Proponents argue that BTC adoption could be beneficial for both nations due to its global acceptance, low transaction fees and lack of inflation.
Brazil and Argentina are looking to develop an alternative to the US dollar in order to boost regional trade and reduce reliance on the world’s most powerful currency. Recent talks have proposed the creation of a new fiat currency, dubbed the ‘Sur’, which would be backed by the Brazilian real and Argentine peso.
However, Bitcoiners have suggested an alternative route by proposing the adoption of Bitcoin (BTC) as legal tender. Arguments have been made that such a move could be beneficial to both nations, due to the global acceptance of the digital currency, its low transaction fees and its lack of inflation.
Gabor Gurbacs, a Strategy Advisor at VanEck, has been vocal in his support of this alternative route. “The answer isn’t a new fiat currency,” Gurbacs stated. Other Bitcoiners have echoed this sentiment, suggesting that BTC’s “volatility” is overstated in relation to LATAM fiats and that the Lightning Network could help with network concerns.
The conversation was further fuelled when Coinbase CEO Brian Armstrong wrote that “moving to Bitcoin” would “probably be the right long-term bet.” While such a suggestion has been met with mixed reactions, there is no denying that crypto adoption is on the rise in Brazil and Argentina, as hyperinflation continues to ravage the Argentinian peso.
The idea of Brazil and Argentina creating their own currency has been met with much positive sentiment, but Bitcoiners have highlighted the potential advantages of adopting BTC instead. Proponents argue that such a move could benefit both nations, due to its global acceptance, low transaction fees and lack of inflation. Ultimately, only time will tell if Brazil and Argentina decide to pursue this route, but it is clear that this is an exciting development in the world of digital currencies.