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Gabor Gurbacs, strategic advisor at Tether and VanEck, has taken to the global X social media network to send an important message to countries with weakening fiat currencies. This message is about the world’s leading cryptocurrency, Bitcoin.
No fiat currency can replace USD, but Bitcoin can, Gurbacs says
Gabor Gurbacs shared his take on any viable alternative to the U.S. dollar among the other fiat currencies around the world. He believes there is no “better alternative” to it for countries whose national fiat currency is depreciating.
Gurbacs’s message to those countries is to follow the example set by El Salvador and consider adopting Bitcoin first as a reserve currency instead of the U.S. dollar, and then announce BTC to be legal tender. El Salvador did choose BTC as its official legal tender in 2021.
No fiat currency today is a better alternative to the U.S. Dollar. Bitcoin is the only real better alternative. Countries with depreciating fiat currencies should consider adopting Bitcoin as a reserve currency then legal tender.
— Gabor Gurbacs (@gaborgurbacs) May 27, 2024
Now, Argentina intends to learn from El Salvador and adopt its Bitcoin experience. Recently, the securities regulator of Argentina (the National Securities Commission, NSC) has initiated a meeting with El Salvador’s National Commission of Digital Assets (CNAD). In this meeting, they discussed potential Bitcoin adoption and regulation in Argentina in the future and how this was performed in El Salvador.
"Not holding Bitcoin is irresponsible"
The advisor at Tether and VanEck also reminded his X audience that he has been a Bitcoin advocate for a decade already, trying to persuade countries and central banks to put Bitcoin on their balance sheets. He believes that this would help to harden and diversify their fiat-contingent reserves.
He believes that these days, in 2024, not holding Bitcoin on a balance sheet is “irresponsible for nation states not to hold Bitcoin.”
For a decade, I am advocating to countries and central banks to add Bitcoin to their balance sheets in order to harden and diversify their fiat-contingent reserves. In this day and age, it's irresponsible for nation states not to hold Bitcoin. Start with 0.5%, build up to 5%.
— Gabor Gurbacs (@gaborgurbacs) May 27, 2024
Bitcoin plunges from $70,000 but begins to recover
The world’s flagship cryptocurrency suddenly plunged by almost 4%, losing the $70,000 level it reached recently after the embattled Mt. Gox exchange began transferring astonishing amounts of Bitcoin to a new wallet.
According to recent reports by Whale Alert, the early Bitcoin trading platform has released the Bitcoin equivalent of $5.1 billion, presumably to further direct these funds to the creditors who suffered after the Mt. Gox hack that happened a decade ago.
Whale Alert spotted seven massive transactions carrying between 4,000 BTC and 34,138 BTC roughly three hours ago.
By now, Bitcoin has managed to recover 1.26% as it is changing hands at $68,446.