Last week it finally happened. In El Salvador, Central America, a new crypto law came into effect that made bitcoin (BTC) legal tender. For the first time in history, cryptocurrencies were put on the same pedestal as fiat currencies in a country.
Many countries in the area kept a close eye on developments in El Salvador. In a number of South and Central American countries, legislators have already examined whether a comparable law has support.
More countries will follow
According to Grayscale CEO Michael Sonnenshein, it will be a matter of time before other countries follow in El Salvador’s footsteps. The CEO of the crypto investment company indicates in an interview with Yahoo Finance that he sees certain regions in the world taking this step first.
Especially emerging countries where the economy is not yet as strong as in certain Western countries are potential candidates, according to Sonnenshein. He argues that even if the governments in these countries are not yet ready to embrace bitcoin and other cryptocurrencies, the population is increasingly recognizing the benefits of crypto.
It is precisely the emerging countries where the adoption of bitcoin may accelerate according to Sonnenshein:
“If we ask ourselves where the adoption rate is highest, it is in emerging countries. Places like Africa, Southeast Asia and parts of South America.”
He also sees the developments in El Salvador as extremely positive for the population of the country. However, this population itself has a different opinion about this at the moment. At least 70% of El Salvadorans see no benefit at all in the new crypto law and a vast majority have no interest in bitcoin or crypto at all.
Nevertheless, El Salvador can, as it were, be the first sheep across the dam. If the experiment in El Salvador goes well, it won’t be long before other countries follow suit. According to Sonnenshein, these are therefore countries in the first place where the economy is not yet in great shape.