- Bitcoin continues to dominate discussions in the financial world as countries with weakening fiat currencies explore alternatives.
- Gabor Gurbacs, a strategic advisor at Tether, advocates for Bitcoin as a viable alternative to the U.S. dollar.
- Gurbacs emphasizes the importance of Bitcoin adoption, citing El Salvador’s example and urging other nations to follow suit.
Discover why Bitcoin is being hailed as a potential replacement for fiat currencies and how global financial dynamics are shifting.
No fiat currency can replace USD, but Bitcoin can, Gurbacs says
Gabor Gurbacs, a strategic advisor at Tether and formerly at VanEck, has made a compelling case for Bitcoin as a superior alternative to the U.S. dollar for countries with depreciating fiat currencies. He argues that no current fiat currency can match the stability and potential of the USD, but Bitcoin stands out as a viable option.
Gurbacs points to El Salvador’s pioneering move to adopt Bitcoin as legal tender in 2021 as a model for other nations. He suggests that countries facing economic instability should consider Bitcoin first as a reserve currency and then as legal tender, following El Salvador’s lead.
Argentina’s Interest in Bitcoin Adoption
Argentina is among the countries looking to learn from El Salvador’s Bitcoin experience. Recently, the National Securities Commission (NSC) of Argentina initiated discussions with El Salvador’s National Commission of Digital Assets (CNAD) to explore potential Bitcoin adoption and regulation. This move indicates a growing interest in Bitcoin as a solution to economic challenges.
“Not holding Bitcoin is irresponsible”
Gurbacs has been a vocal advocate for Bitcoin for over a decade, urging countries and central banks to include Bitcoin in their balance sheets. He believes that diversifying reserves with Bitcoin can help stabilize and strengthen national economies.
In 2024, Gurbacs reiterated his stance, stating that it is “irresponsible for nation states not to hold Bitcoin.” He recommends starting with a small allocation of 0.5% and gradually increasing it to 5% to build a robust financial reserve.
Bitcoin plunges from $70,000 but begins to recover
Recently, Bitcoin experienced a sudden drop of nearly 4%, falling below the $70,000 mark. This decline was triggered by the Mt. Gox exchange transferring significant amounts of Bitcoin to a new wallet, amounting to $5.1 billion.
Despite this setback, Bitcoin has shown resilience. According to Whale Alert, several large transactions were detected, ranging from 4,000 BTC to 34,138 BTC. As of now, Bitcoin has recovered 1.26%, trading at $68,446.
Conclusion
Bitcoin’s role in the global financial landscape continues to evolve. As countries with weakening fiat currencies explore alternatives, Bitcoin emerges as a promising option. Gabor Gurbacs’s advocacy for Bitcoin adoption highlights its potential to stabilize and diversify national reserves. Despite recent volatility, Bitcoin’s recovery underscores its resilience and growing acceptance as a legitimate financial asset.
