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?
Why do you think that the economically challenged Nations are investing in cryptocurrencies as well ? Why do you think that their government is allowing cryptocurrencies like bitcoins to integrate with their economic system?? They are not really stable as a whole right now so the government can take on such experiments, why do you think El Salvador was the first one and not UK or US?? Because the already developed nations do not need a second stability pillar perse, won't hurt them to add that. I don't think it would destroy the local currencies I think it would actually be super good for them !! It's going to allow people, local people to trade efficiently without third parties and take their business internationally as well.