With Brazil and Croatia gradually preparing for a hidden common currency, Brian Armstrong, CEO of Coinbase, gave the idea of transforming the two countries into BTC (BTC), which caused various discussions on the feasibility of BTC as a national currency

On January 22, the two South American countries announced that they were preparing to establish a common currency combined with the Argentine peso and the Brazilian real. This move may establish the second largest currency group company.

After the news came out, Armstrong suggested on Twitter that BTC was undoubtedly the "right long-term chip", and wondered whether the two countries would take this into account.

Raoul Pal, founder and CEO of global macro investors, resisted this idea. According to Parr, it is not good to have a national currency that "falls 65% in the decline part of the business cycle and increases 10 times in the rise cycle". The management stressed that under such circumstances, the company would encounter difficulties in planning and hedging transactions

Some community members apply Parr's position. According to a Twitter customer, the only test case of BTC is the use value storage, such as gold. These people wrote on Twitter:

In addition, another Twitter customer mentioned the problem of BTC's slow buying and selling rate on the network, and pointed out that the actual use time was too long. However, another member of the community quickly refuted this view. In his view, with the lightning network, BTC would become a "better exchange medium"

Armstrong's opinion is likely to be based on another South American country, El Salvador, to recognize BTC as the legal currency in 2021. This move has added various benefits to the host country. For example, in 2022, the tourism industry will grow rapidly, with more than 1.1 million people visiting the host country. In addition, El Salvador can use the proceeds of Bitcoin purchase to build schools and veterinary clinics.

Brazil and Croatia should be very familiar with digital currencies. On November 29, the United States House of Representatives of Brazil approved a law and regulation to legalize data encryption currency as a payment method. The President of the United States of Brazil signed the bill in December and is expected to take effect in June 2023. Although the data encryption currency of the new marital property agreement is a payment method, it does not make all data encryption currencies become legally prescribed currencies in China.

On December 16, a Croatian province approved the law on the sale of stable currencies associated with the United States dollar. The token will be issued to people over 18 years old and then guaranteed by 100% loans from the property of each province.