El Salvador Plays Host to Developing Economies to Delve Deeper into Bitcoin Adoption

Brian Njuguna  May 18, 2022 18:00  UTC 10:00

2 Min Read

The ongoing Bitcoin conference in El Salvador could not have come at an interesting time when the leading cryptocurrency has shown its resilience amid the current LUNA crash, according to Mikkel Morch, the executive director at crypto hedge fund ARK36. 

El Salvador is hosting the Alliance for Financial Inclusion (AFI) annual meeting, running from May 16 to 18, with 44 countries in attendance.

Most of the nations attending are from developing economies like Madagascar, Kenya, Egypt, Nigeria, Uganda, Paraguay, Rwanda, Jordan, Pakistan, Haiti, Honduras, Ecuador, Namibia, Palestine, Bangladesh, Ghana, and Costa Rica.

El Salvador’s President, Nayib Bukele, had previously pointed out that the primary objectives of the conference entailed discussing the Bitcoin rollout, banking the unbanked, the digital economy, and financial inclusion.

Therefore, Morch believes the conference will play an instrumental role in expanding the knowledge base of emerging economies about the benefits of adopting a deflationary asset like Bitcoin and not algorithmic stablecoins, such as TerraUSD (UST).

He noted:

“On such a dramatic backdrop, the value proposition of Bitcoin as a truly decentralised, technologically secure, and deflationary asset has once again shined. If there is a way for the developing economies to benefit from crypto, it will not be through exotic products such as algorithmic stablecoins but through the reliable innovation that the Bitcoin network offers.”

According to Morch, despite Bitcoin’s volatility, President Bukele’s initiative illustrates that BTC adoption is moving forward on a global scale. 

He added:

“The announcement of this high profile Bitcoin conference comes at a very interesting moment for Bitcoin and the whole crypto industry. The digital asset market has just absorbed - not without significant damage - a collapse of LUNA, a $40-billion decentralised finance ecosystem revolving around an algorithmic stablecoin.”

LUNA sent shockwaves to the crypto market because it collapsed to near-zero overnight despite being one of the top ten cryptocurrencies.

Therefore, the El Salvador conference might shift the narrative to cryptocurrencies that have stood the test of time, like Bitcoin. 

Image source: Shutterstock

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