Cryptocurrency News

El Salvador’s bitcoin adoption is an ‘interesting experiment’, says BIS exec

Benoit Coeur, Bitcoin (B T c) critic and head of the innovation hub at the Bank of International Settlements, called El Salvador’s historic move to make BTC legal tender in the country an “interesting experiment”.

According to Reuters, Coeure said during the launch of BIS’s Fourth Innovation Hub in England on Friday, claiming:

“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.”

As previously reported by Cointelegraph, the Parliament of El Salvador Passed a bill to make bitcoin legal tender in country. President Nayib Bukele’s legislative vote on the “Bitcoin Law” passed with an overwhelming majority of 62 out of 84 votes.

Back in November 2018, Coeure described bitcoin as “spawn of evil [2008] Financial CrisisCoeure’s comments about the need for stricter crypto regulations are a common theme within the BIS, which General Manager Agustín Carstens also calls on regularly. More stringent cryptocurrency laws.

Coeur’s comments come after similar stern warnings from the International Monetary Fund (IMF) in the wake of El Salvador’s decision. Responding to the news, the IMF said that the decision could be significant legal and financial implications.

RELATED: IMF Plans to Meet with El Salvador’s President, Potentially Discussing Move to Adopt Bitcoin

Indeed, reports indicate that bitcoin could be the subject of discussions between the IMF and the President of El Salvador over a planned $1 billion program.

On Thursday, the Basel Committee on Banking Supervision published a consultation paper that placed bitcoin in its highest risk category. As part of its recommendations, the global banking regulator called on banks seeking cryptocurrency exposure to hold $1 of capital for every $1 worth of BTC held in custody.