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?
Personally, I don’t really think that’s going to be the case in this situation. A lot of these people make use of cryptocurrency for their online transactions, but at the end of the day they still end up withdrawing that money to their local currency. I move I don’t really see anything bad about that, because cryptocurrency has really created a lot of opportunities for the youths in these countries.
A lot of them have been able to become successful by trading cryptocurrencies online. So, this is an opportunity for them, and is also a way for them to generate income and help the country. So, it’s not really bad and I don’t think it’s going to affect their currencies at all.