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 don't think BTC will be able to weaken the local currencies of developing and other countries. The fact is that BTC takes a long time to carry out transactions and high commissions, which in turn will not be able to ensure the work of trade and other areas. BTC is currently good as a means of accumulating wealth or just to make money, but unfortunately not for using it instead of local currencies. Moreover, the price of BTC is very volatile, which is also not suitable for use as a substitute for local currency.