Coinbase CEO suggests Brazil and Argentina adopt bitcoin

Preparatory work for the establishment of a common currency between Argentina and Brazil has begun. It is in this context that the CEO of Coinbase suggested that both countries use Bitcoin. Thus, he urges both countries to allow bitcoin to be legal tender. This did not fail to raise heated debates, especially on Twitter.

Brian Armstrong, CEO of Coinbase suggesting the use of bitcoin as a common currency for Argentina and Brazil in a tweet.

Argentina-Brazil: the creation of a new monetary union?

On January 22, the two most powerful economies in Latin America announced their intention to create a common currency. Lula Da Silva, newly elected President of Brazil, further declared: If it depended on me, we would have foreign trade always using the same currency of other countries, so we would not have to depend on the dollar “.

We have decided to advance discussions on a common South American currency that can be used for both financial and commercial flows, reducing operational costs and our external vulnerability “wrote the presidents of Brazil and Argentina in an editorial.

It is in this context that the CEO of Coinbase tweeted: “ I wonder if they would consider switching to Bitcoin – that would probably be the right bet in the long run “. Cointelegraph thinks this idea came to him from El Salvador. Indeed, this country would have succeeded in building hospitals thanks to the profits on its Bitcoin investments.

Bitcoin as legal tender?

In response to Brian Armstrong’s Tweet, one can read responses that discourage the use of bitcoin as a national currency. One of them comes from Raoul Pal, entrepreneur and investor who tweeted: “ACurrently, no one can have a national currency with 100% volatility that drops 65% in the down part of the business cycle and increases 10 times in the up cycle. Companies are struggling to plan or cover this. Another user reminded Pal that the price of the Argentine peso once had to drop 90%.

Brazil and Argentina are two countries that understand digital currencies well. It wouldn’t be surprising if they ended up adopting one. It might look like what Russia was proposing not long ago.

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