Two months after El Salvador wrote the script to become the first country to preside over Bitcoin , fiat and financial industry supporters still don’t seem to be completely sold by ideas. The Bank of England Governor Andrew Bailey recently said he had expressed concern about the same thing while speaking at the meeting. Bloomberg .
Bailey attended the University of Cambridge Students’ Union and answered questions during the session. He mentioned the adoption of Bitcoin in El Salvador because unsuspecting consumers can be significantly affected by its volatility. He said,
“I’m worried that a country may choose it as its currency. The most worrisome thing is that the citizens of El Salvador understand the nature and variability of their currency. “
He further said that the International Monetary Fund, which monitors global financial risks, is not in favor of El Salvador’s decision. The IMF has repeatedly paid attention to the recent choice of Bitcoin as fiat currency.
The warning was previously obscured, but a country for monetary policy earlier this week that spoke openly . It encouraged the country to narrow the scope of the Bitcoin Act while strengthening the regulation and oversight of the newly established payment ecosystem.
Bitcoin and CBDC
However, Bailey’s restraint on Bitcoin should not be mistaken for a hatred of technology. The governor has revealed that the central bank of the United Kingdom is also studying the creation of its own digital currency payment system, the Digital Pound. This allows you to facilitate smoother online payments while providing your customers with a “safe and technology-updated way to hold cash.” He added,
“There are strong cases for cryptocurrencies, but in our view they need to be stable, especially if they are used for payments. That is not the case for crypto assets.”
El Salvador first legalized Bitcoin in September 2021 in a wave of both support and criticism. I remain public opinion survey is a pretty negative about the movement, the country continues to develop a bit coin infrastructure increasing its holdings , update of the wallet services , and even bit coin City of creating a $ 1 billion-bit coin debt I am using.
As for Bailey, bankers have Echo similar constraints on the crypto market several times in the past. Earlier this month, he pointed out that digital assets and payment systems are increasingly being used by criminals for illegal payments.
This is a translation from the English version.