Coeure Doubts Bitcoin To Service As A Currency Base In El Salvador

On that account, the BIS official was not the only one that articulated concerns regarding the adoption of bitcoin as a legal tender.

As at the time of writing this news, the following information was gathered;

An official at the bank of international settlements (BIS), has avouched that bitcoin lacks the potentials for acceptance as a means of payment in El Salvador. He describes the step El Salvador took in making the cryptocurrency a legal tender and "an interesting experiment".

Benoit Coeuré, head of the Innovation Hub at BIS, on Friday during the launch of regulatory research lamented that El Salvador's step to adopt bitcoin as a legal tender was an interesting experiment.

It was also gathered that in 2020 Benoit Coeure, served as head of innovations at BIS . During 2013 to 2019, he was once a member of the executive board of the European Central Bank (ECB), he equally chaired the BIS Committee on Payments and Market Infrastructure.

As a matter of fact, El Salvador was the first country to embrace bitcoin alongside the U.S. dollar.

Other important updates from the news include;

After the Salvadoran congress passed a bill upon the adoption of cryptocurrency as a legal tender, on that account became the first country in the world to adopt bitcoin and the U.S. dollar as its national currency. The country is also exploring mining using energy from volcanoes.

In addition, in line with the proposal, Benoit Coeure was not the only one that raised concerns over the adoption of bitcoin as a legal tender in El Salvador. It is also on record that the International Monetary Fund (IMF) on Thursday disclosed that "Adoption of bitcoin as a legal tender" raised a lot of macroeconomic and legal issues.

In conclusion, many countries including the I.S. are increasing their efforts to regulate cryptocurrencies. Financial regulators for major economies this week proposed additional capital rules for banks holding crypto assets.

What are your thoughts about Benoit Coeure's opposition of the bitcoin as a legal tender in El Salvador?