According to Economic Confidential blog " IMF says, Crypto Assets May Displace Local Currencies in Developing Countries". Source: Economic Confidential, Facebook page..
Bitcoin is taking over the internet for online transaction, therefore, most of the local currencies in the developing Nations are affected.. because developing Nations are not inclined in the e-currency transaction while the new generation youths use the e-currency for transactions. That making the local currency weak.
Can Bitcoin really weaken the Local Currencies in the Developing Nations?
I live in a developing country and still don't have any businesses, establishments, services... that accept bitcoin payments, but that doesn't mean my country will always be. Although, developing countries are seriously lacking in IT infrastructure, even some areas don't have internet infrastructure yet… It's difficult and I think it will take a long time to adopt the culture or the message that bitcoin brings.
Inflation is the main cause of the loss of value of local fiat rather than bitcoin. Bitcoin is the Light that can pull us out of that grave.