We could soon see an Arab nation adopting Bitcoin (BTC) in the near future. This is according to Prince Philip Karadjordjevic of Serbia, who talked on the Bitcoin Reserve Podcast and indeed that BTC is compatible with Sharia Law. The next country to make Bitcoin legal tender will become the third one in the world after El Salvador and the Central African Republic.
Could Bitcoin be Adopted by an Arab Nation?
Bitcoin could be adopted by an Arab country in the near future. According to Prince Philip Karadjordjevic, an Arab monarchy could adopt Bitcoin sooner than later. During the Bitcoin Reserve Podcast, Prince Philip Karadjordjevic stated that some Arab countries are very stable compared to other countries under monarchies.
About that, he mentioned:
“Maybe you’ll see an Arab monarchy or even an Arab country, adopt Bitcoin a lot sooner than you think. […] If you compare them, you have countries like Jordan, Oman, and the United Arab Emirates which are monarchies. They have been very stable countries for a hundred years or so.”
When it comes to Sharia Law, Prince Philip Karadjordjevic stated that Bitcoin is compatible with it. Let’s not forget that Bitcoin’s total supply is capped at 21 million and that there are no central authorities that could decide to increase the total supply of this virtual currency. Therefore, Bitcoin cannot be debased or rehypothecated.
There have been different debates over the last few years about whether Bitcoin is compatible or not with Sharia Law. Despite the debates that have taken place, there is still uncertainty about it, but Prince Philip Karadjordjevic believes that Bitcoin and Sharia Law are compatible.
One of the countries that could adopt Bitcoin in the future is Saudi Arabia. Why? Because it could start using Bitcoin in order to settle payments for oil. Saudi Arabia is one of the largest oil producers in the world. Several countries have been analysing the possibility to start using Bitcoin to process payments for oil.
Nevertheless, there have been no visible moves when it comes to adopting Bitcoin in order to process these payments. Let’s not forget that with the war in Ukraine Russia has been disconnected from the SWIFT network and other countries have also been threatened to be disconnected as well. Therefore, one of the possibilities to settle payments across borders was to use Bitcoin.
It is now time to see whether there is a new country starting to use Bitcoin as legal tender or not. Additionally, it would be very interesting to analyse which is the impact that Bitcoin could have on international commerce as more countries are starting to use Bitcoin on a daily basis.
This could result in an increase in international transfers using BTC and settling international commerce transactions using the largest virtual currency in the world. Nonetheless, there is still a long way for Bitcoin to be considered a worldwide currency that could eventually replace the U.S. dollar (USD), the Euro (EUR) or the Japanese Yen (JPY) for international transactions.