• The Presidents of Brazil and Argentina are aiming to strengthen their economy by introducing a common currency.
• The CEO of Coinbase believes that Bitcoin could be a suitable option for the two nations.

Brian Armstrong, CEO of cryptocurrency exchange Coinbase, expressed his opinion regarding the importance of Brazil and Argentina to consider Bitcoin as a potential currency. This comes after the announcement by the presidents of the two countries that they are working together to create a unified currency.

He tweeted that Bitcoin is a viable option that leaders of the South American countries should consider in the long-term.

It makes me wonder if they’d consider moving to Bitcoin; that would probably be the right bet in the long run https://t.co/6EKJdwcSnO

—Brian Armstrong (@brian_armstrong) January 23, 2023

Bitcoin has an advantage due to its limited supply and growing adoption by investors and institutional investors, which has led to its tremendous growth and value. Bitcoin has been the most valuable cryptocurrency when it comes to market capitalization in the last 5 years.

Famous financial leaders, such as Paul Tudor and Tim Draper have praised Bitcoin as the only cryptocurrency that has intrinsic value.

Contrary to this, economist and investment strategist Raoul Paul has countered Brian Armstrong’s suggestions and stated that Bitcoin’s extreme volatility could be more damaging than helpful.

A currency with 100% volatility cannot be held by anyone. It must decline 65% at the bottom of the economic cycle, and increase 10 times during the up cycle. This is something that many people have difficulty planning for.

This was said in a reply on Twitter.

The Presidents of Argentina and Brazil Aim to Use a Common Currency for South America

Brazil and Argentina have been straightforward about their economic intentions. The two countries are now on a mission to improve their local currencies, as well as to reinforce the existing monetary policies to get around the exchange rate restrictions.

The presidents of the Argentine Republic, Alberto Fernández, and the president of Brazil, Luiz Inacio Lula da Silva, revealed their plans in a joint article published on the Argentine website Perfil.

The article also discussed the need for a shared currency to promote trade within the South American region and to reduce Brazil’s dependence on the U.S. dollar.

It was also decided to move the discussions on the development of a common currency forward. A currency that can be used for both commercial and financial transactions, reducing costs and external vulnerability.

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