Benot Coeur, an official at the Bank for International Settlements (BIS) and a former member of the executive board of the European Central Bank (ECB), stressed that bitcoin has not passed the test of being a means of payment. He called El Salvador’s move to make cryptocurrencies legal tender “an interesting experiment.”
BIS official suspects bitcoin can act as a means of payment in El Salvador
Benot Coeur, Head of the Innovation Hub at the Bank for International Settlements (BIS), commented on El Salvador’s move to make bitcoin legal tender on Friday. He said at the launch of a regulatory research center at the Bank of England (BOE):
El Salvador, this is a really interesting experiment.
Benot Coeur, a member of the BIS Executive Committee, was appointed to head the Bank’s Innovation Hub in 2020. He was previously a member of the Executive Board of the European Central Bank (ECB). From 2013 to 2019, he chaired the BIS Committee on Payments and Market Infrastructure.
El Salvador becomes the first country in the world to make bitcoin its own National currency, along with the US dollar, after its Congress on Wednesday passed a bill to make the cryptocurrency legal tender. The country is now searching digging Using energy from volcanoes.
We at BIS are clear that we do not pass the test of bitcoin being a means of payment. Bitcoin is a speculative asset and should be regulated as such.
BIS officials are not the only ones who have expressed concern about bitcoin being legal tender in El Salvador. International Monetary Fund (IMF) said on Thursday that “the adoption of bitcoin as legal tender raises a number of broader economic, financial and legal issues.”
Meanwhile, many countries including America, are increasing their efforts to regulate cryptocurrencies. This week, financial regulators in major economies proposed additional capital rules for banks holding crypto assets.
What do you think of Benot Coeur’s comments on bitcoin in El Salvador? Let us know in the comments section below.
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