Crypto Adoption: Argentina and Brazil Discuss Common Currency, Bitcoin?

Estimated read time 2 min read
  • Brazil and Argentina are in discussions about developing a common currency in an effort to boost regional trade.
  • The main agenda behind a common currency is to reduce reliance on the dollar and boost regional trade.

Brazil and Argentina are considering the development of a common currency, but the idea has been met with criticism from the crypto community. Brian Armstrong, CEO of San Francisco-based exchange Coinbase, hopped into the conversation tweeting that Bitcoin (BTC) would be a wise decision for the long term. However, his tweet was met with widespread criticism from the crypto community.

One of the main criticisms of Armstrong’s proposal is the volatility of Bitcoin. Bitcoin is a highly volatile asset, meaning its price can fluctuate wildly in a short period of time. This makes it difficult to use Bitcoin as a stable currency, as businesses would be unable to predict how much their goods or services would cost from one day to the next.

Another criticism of Armstrong’s proposal is that Bitcoin is not widely accepted as a form of payment. While Bitcoin adoption is growing, it is still not widely accepted by businesses in Brazil or Argentina. This means that a common currency based on Bitcoin would not be very useful for day-to-day transactions.

In addition to the volatility and lack of acceptance criticisms, some people in the crypto community also pointed out that Armstrong is not a neutral actor in this debate. Coinbase is a major cryptocurrency exchange, and Armstrong has a vested interest in promoting Bitcoin. This makes it seem like he is not being objective when he suggests that Bitcoin is the best option for a common currency between Brazil and Argentina.

Overall, it seems like Bitcoin is not the best option for a common currency between Brazil and Argentina. The volatility and lack of acceptance of Bitcoin make it a poor choice for a currency that businesses and individuals would need to use on a daily basis. Instead, the two countries should focus on developing a more stable and widely accepted currency that would be more beneficial to their economies.

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