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Lugano and El Salvador Lead Bitcoin Adoption in 2022


cryptoknowmics.com 03 April 2022 09:30, UTC
Reading time: ~4 m

Recently, the Swiss city of Lugano recognized Bitcoin (Bitcoin Adoption) as a legal tender in the district. The experts also urged nearby businesses to accept cryptocurrency payments in regular transactions. While Lugano's crypto declaration surprised opponents of bitcoiners, the crypto community's reaction was predictable, as they anticipated that more nations and districts would recognize Bitcoin due to rising expansion, questionable international circumstances, and BTC's status as a hedge against an unsteady global economy. Lugano is following in El Salvador's footsteps, the Central American country that recognized Bitcoin as a legal tender last year. Despite the findings of international financial organizations such as the World Bank and the IMF, El Salvador's president, Nayib Bukele, has maintained the country's Bitcoin system. The reception was fruitful for the Central American country, as its GDP increased by more than 10% in 2021, the highest level in its history. Furthermore, El Salvador's travel industry increased by more than 30% following its Bitcoin acceptance. However, why have nations and cities begun to accept Bitcoin as a legitimate tender? What provisions are there in the current monetary framework? Are other countries adopting some lessons from El Salvador's experience? "Bitcoin may be a potential 'far out' in an inflationary economy to protect existing resources," said Marc P. Bernegger, the Crypto Fund AltAlpha Digital CEO. Furthermore, Bernegger acknowledges that the current large-scale financial climate is volatile. In response to the provisions in the global monetary framework, he stated, "An increasing number of financial backers question the viability of our real monetary framework, particularly after the massive cash printing caused by COVID."

Optional Asset

As indicated by the essential definition, alternative resources are those resources that do not fit into the categories of stocks, bonds, and money. While Bitcoin began its journey as a 'risky resource,' which some believe it is, BTC has secured itself as presumably the main alternative resource in a previous couple of years. Bernegger stated that the new monetary emergency and rapid expansion have 'pushed' financial backers to investigate alternative assets such as Bitcoin. The growing interest from foundations has contributed significantly to the world's most important advanced resource's all-around expanding reception.

Bitcoin's Long-Term Prospects

BTC's new achievement is a mix of revenue from current and long-term financial backers. While short-term investors are more interested in value development and rallies, long-term investors are optimistic about the growing acceptance of digital currency resources. "Long-term investors believe Bitcoin can, and most likely will steer our global monetary framework in the not-too-distant future." Places like Lugano and El Salvador share that long-term perspective, viewing the establishment of a framework to aid in the development of simple cryptographic money as both a wise and fundamental move for the future, According to Jason Deane, an Analyst at Quantum Economics. According to Jason, long-term Bitcoin holders truly comprehend the cryptocurrency's decentralized concept.

Bitcoin Adoption by Institutions

Over the most recent couple of months, the total number of global organizations that accept Bitcoin (Bitcoin Adoption) as a payment method has increased significantly. According to a research report distributed by Crypto.com, the total number of cryptographic money clients will reach 300 million by the end of 2021. The figure is expected to reach one billion by the end of 2022. With Bitcoin's growing global acceptance, businesses have begun to recognize its potential, which is why companies like Overstock, Starbucks, and Newegg are now accepting BTC for payments. "We've seen a lot of support for new payment methods, for example, those made possible by bitcoin innovation. The fact that eBay is considering crypto as another type of payment is an intriguing turn of events. Some may argue that it demonstrates bitcoin's growing acceptance, heralding a new era in fintech. The increasing acceptance of bitcoin confirms its suitability as the foundation of an alternative monetary framework, "Bitfinex's CTO, Paolo Ardoino, stated.

Change in Tone: Bitcoin Adoption 

The atmosphere surrounding Bitcoin has shifted dramatically in the last few months. JPMorgan CEO Jamie Dimon, for example, once referred to Bitcoin as a "cheat." JPMorgan is currently investigating various potential outcomes in the global crypto space. Farah Mourad, the Senior Market Analyst at XTB MENA, stated that European countries had increased their emphasis on Bitcoin and other crypto-assets. "Lugano's Bitcoin declaration is a crucial achievement for cryptographic forms of money in the old mainland, where European Central Bank President Christine Lagarde once labeled advanced resources as dubious.'' A shift in tone has also been observed recently, following the European Union's rejection of a proposed decision that would have prohibited the digital currency Bitcoin across the alliance, "Farah understood. While El Salvador and Lugano have previously recognized Bitcoin as a legal risk, nations experiencing rapid growth and a thriving economy are also considering the acceptance of BTC. According to reports, countries such as Mexico, Honduras, and Argentina are currently investigating Bitcoin acceptance options.

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