Bank of England raises fresh concern over El Salvador BTC adoption


TL;DR Breakdown

  • Bank of England governor expresses concern over El Salvador adoption of BTC.
  • Asks if Salvadorians are aware of Bitcoin’s volatility.
  • Salvadorians also kick against Bitcoin law.

Months after El Salvador legally adopted Bitcoin as its Legal tender, Bank of England is the latest to join the growing list of critics who have slammed the country for the crypto move.

Governor of the Bank of England, Andrew Bailey, recently questioned El Salvador’s decision to adopt Bitcoin as legal tender while speaking at Cambridge University. “It concerns me that a country would choose [Bitcoin] as its national currency,” Bailey said.

This comes after series of complaints from different quarters against El Salvador’s Bitcoin policy.

The World Bank was the first international body to voice its displeasure about El Salvador adopting Bitcoin. The World bank even said it would not help El Salvador develop its then recently-announced Bitcoin project, citing environmental and transparency concerns.

Apart from the world bank. IMF also expressed concern in July, stating that making Bitcoin a legal tender “raises a number of macroeconomic, financial, and legal issues.”

Months after, the IMF said El Salvador’s policy is an “inadvisable shortcut” that raises “substantial risks.”

Bank of England main concern about El Salvador

The Governor of the Bank of England, while speaking, asked if Salvadorians are aware of Bitcoin’s volatility. El Salvador’s decision to adopt Bitcoin as its currency was concerning because consumers probably will be caught out by its volatility.

“It concerns me that a country would choose it as its national currency,” Bailey said in response to a question at an appearance at the Cambridge University student union on Thursday. “What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”

Salvadorians also concerned over Bitcoin law

Since July, when the legislative nod was given for El Salvador to adopt Bitcoin, series of concerns have arisen.

Salvadorians, in their numbers, staged an Anti-Bitcoin protest several times. The anti-Bitcoin sentiment at these protests was also proven after multiple surveys that found most Salvadorans did not support adopting Bitcoin as legal tender.

Another issue raised was transparency regarding who controls the public keys to the country’s Bitcoin.

The government has also never provided a clear policy that governs when—and to what degree—it purchases Bitcoin for the nation.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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