KPMG: Other Nations “Could Follow” El Salvador in Adopting Bitcoin

Reading Time: 2 minutes
  • KPMG has reported that more countries could follow the lead of El Salvador in adopting Bitcoin as legal tender
  • The accounting firm sees the concept of a supplementary sovereign currency as becoming more popular in developing nations
  • The H2 2022 trends report suggests that the crypto slump is set to flatten out but investment remains high

Accounting giant KPMG has said that more developing nations could follow the examples set by El Salvador and the Central African Republic and adopt Bitcoin as legal tender. In a recent report looking at trends for the second half of 2022 (a little bit late, but never mind), KPMG opines that the cryptocurrency investor profile has changed since 2018, with “institutional and corporate investors now accounting for a much larger share of investment.” Noting the adoption of Bitcoin by two countries so far, it adds that “other developing nations could follow their lead in H2’22 and beyond.”

Investment Levels at Highest Ever

KPMG’s report, Pulse of Fintech, contained the following summary for the crypto space in the second half of 2022:

Crypto and blockchain investments will increasingly focus on infrastructure. While investment in cryptocurrencies is expected to slowdown [sic] further, there will likely be a continued focus on the use of blockchain in financial market modernization.

The report naturally mentioned the post-Terra/Celius crash but noted that “investment at mid-year remained well above all years prior to 2021” which it said highlights “the growing maturity of the space and the breadth of technologies and solutions attracting investment.”

Developing Nations Could Look to Bitcoin

The report then highlights the changing demographic of crypto investors, reinforcing the already accepted notion that institutional investors are buying into crypto in a big way, taking a share of the market away from retail investors.

Most interestingly, it notes that there has been “increasing interest in the use of cryptocurrencies in order to support crypto sovereignty and move away from the use of existing currencies like the US Dollar”, with the potential for other countries to follow the lead of El Salvador and the Central African Republic in the months and years to come.