Brian Armstrong: “BTC could become legal tender for Brazil and Argentina”

Brazil and Argentina plan to start discussing the stages of creating a single settlement currency. The head of Coinbase invited two Latin American countries to use bitcoins for these purposes.

Argentine President Alberto Fernandez and Brazilian President Luiz Inacio Lula da Silva announced the desire of the two largest countries in the region for economic integration and their readiness to create a single settlement currency for cross-border payments. The new currency will have to be used in parallel with the Argentine peso and the Brazilian real.. The idea is to reduce countries' dependence on the US dollar and encourage regional trade.

According to the head of the cryptocurrency exchange Coinbase Brian Armstrong (Brian Armstrong), the first cryptocurrency could be accepted as such a legal tender.. He called BTC “the right long-term bet” and wondered if the two states would consider it. However, Armstrong's proposal not only did not find unanimous support among his subscribers, but also drew criticism from industry experts.

Noted bitcoin critic, co-founder and CEO of Global Macro Investor analytics company Raoul Pal stated that “no one can have a national currency with 100% volatility that falls by 65% on the downside of the business cycle and rises in ten times in an ascending cycle.” Some members of the crypto community supported Pal's opinion and opposed Armstrong's idea. According to them, the only use of BTC in real life is as a store of value like gold.

Previously, a popular cryptocurrency analyst under the pseudonym DonAlt told his 456,000 followers on Twitter that the growth of the cryptocurrency market in early 2023 could be the beginning of an increase in the price of bitcoin.