BOE Governor Raises Concerns over El Salvador's Bitcoin Move

Andrew Bailey, the Governor of the Bank of England, expressed his concerns about the use of Bitcoin as legal tender in El Salvador. Speaking at an event organized by the Cambridge Student Union, Bailey said that the volatile nature of Bitcoin is dangerous.

“It concerns me that a country would choose it as its national currency. What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, or stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Trad Read this Term of the currency they have,” the BOE Governor said.

El Salvador approved the use of Bitcoin as legal tender in the country during September 2021. In addition to the usage of the digital asset as a payment method, the Central American nation is also holding BTC in large amounts.

During the latest crypto market correction, El Salvador expanded its BTC holdings with the addition of 100 Bitcoin. With that, the country is now holding more than $60 million worth of Bitcoin Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term. Since the start of October, El Salvador has increased its BTC accumulation. Moreover, the country introduced several initiatives to enhance BTC’s mass adoption in the region.

Nayib Bukele’s Bitcoin Strategy

Nayib Bukele, the President of El Salvador, received criticism from leading financial organizations for the country’s Bitcoin strategy. Last week, IMF criticized El Salvador’s BTC adoption. “Given bitcoin’s high price volatility, its use as a legal tender entails significant risk to consumer protection, financial integrity and financial stability. Its use also gives rise to fiscal contingent liabilities. Because of those risks, bitcoin should not be used as a legal tender,” IMF said.

However, Bukele remained a strong believer in Bitcoin despite all the criticism. In fact, he expressed his desire to acquire more BTC in the future. “Bank of England is ‘worried’ about El Salvador’s adoption of BTC? Really? I guess the Bank of England’s interest in the well-being of our people is genuine. I’m really concerned about the Bank of England printing money out of thin air,” Bukele said.