Skip to main content

Bank of England Governor Worried About Bitcoin Being Legal Tender in El Salvador

http://motleybloggers.com/wp-content/uploads/2021/11/bank-of-england-governor-worried-about-bitcoin-being-legal-tender-in-el-salvador.jpg

Bank of England Governor Worried About Bitcoin Being Legal Tender in El Salvador

The governor of the Bank of England, the country’s central bank, has voiced concerns about El Salvador choosing bitcoin as a national currency. Citing a recent warning by the International Monetary Fund (IMF) against bitcoin’s use as legal tender, the governor said: “What would worry me most of all is, do the citizens of El Salvador understand the nature and volatility of the currency they have.”


Bank of England’s Governor Is Concerned About Bitcoin Being Legal Tender in El Salvador


Bank of England (BOE) Governor Andrew Bailey raised concerns about bitcoin being used as legal tender in El Salvador while speaking at the Cambridge University student union Thursday. Bailey explained:


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 of the currency they have.


El Salvador passed a bitcoin law making the cryptocurrency legal tender alongside the U.S. dollar in September.


Governor Bailey added that the International Monetary Fund (IMF) is not happy that El Salvador has made BTC legal tender.


The IMF told El Salvador last week that bitcoin “should not be used as a legal tender.” Citing “bitcoin’s high price volatility,” the Fund stated that the use of BTC “as a legal tender entails significant risks to consumer protection, financial integrity, and financial stability.” In addition, “Its use also gives rise to fiscal contingent liabilities.”


The IMF’s warning came one day after El Salvador’s president, Nayib Bukele, announced a plan to build the world’s first “bitcoin city” powered by a volcano and financed by bitcoin bonds.


Despite the IMF’s warning, El Salvador bought 100 more bitcoins, taking advantage of Friday’s crypto sell-offs following reports of a new Covid-19 variant.

Governor Bailey also commented on the Bank of England’s work to determine whether to issue its own central bank digital currency (CBDC). He emphasized:


There is a strong case for digital currencies, but in our view it has to be stable, particularly if it’s being used for payments. That is not true for crypto assets.


The Salvadoran president responded to the concerns raised by the governor of the Bank of England via Twitter Saturday.


He wrote: “Bank of England is ‘worried’ about El Salvador’s adoption of bitcoin? Really? I guess Bank of England’s interest in the well-being of our people is genuine. Right? I mean, they have always cared about our people. Always. Gotta love Bank of England.” Bukele further tweeted:


I’m really concerned about Bank of England printing money out of thin air.


What do you think about Andrew Bailey’s comments? Let us know in the comments section below.



Origina post from
http://motleybloggers.com/bank-of-england-governor-worried-about-bitcoin-being-legal-tender-in-el-salvador/

Comments

Post a Comment

Popular posts from this blog

US Senator Urges Congress to Pass Her Crypto Bill — Claims It Would’ve Prevented FTX Bankruptcy

http://motleybloggers.com/wp-content/uploads/2022/11/us-senator-urges-congress-to-pass-her-crypto-bill-claims-it-wouldve-prevented-ftx-bankruptcy.jpg U.S. Senator Cynthia Lummis believes that the FTX bankruptcy wouldn’t have happened under the Lummis-Gillibrand crypto bill. She stressed: “It’s clearer now than ever before that we need comprehensive regulation in the digital asset space.” Senator Lummis Explains How Her Crypto Bill Would Prevent the FTX Catastrophe U.S. Senator Cynthia Lummis (R-WY) explained in a series of tweets Monday why the collapsed cryptocurrency exchange FTX wouldn’t have gone bankrupt had Congress passed her crypto bill. The cryptocurrency trading platform filed for bankruptcy last week. The senator from Wyoming has been a supporter of bitcoin for quite some time. She personally owns BTC and believes that bitcoin is something that the Federal Reserve should hold on its balance sheet. She has said repeatedly that the cryptocurre...
Post a Comment
Read more

Bitcoin, Ethereum Technical Analysis: ETH Back Under $2,000 as Balenciaga Gains Lose Steam

https://motleybloggers.com/wp-content/uploads/2022/05/bitcoin-ethereum-technical-analysis-eth-back-under-2000-as-balenciaga-gains-lose-steam.jpg Following strong gains to start the week, BTC once again fell under $30,000, as crypto prices moved lower on Tuesday. The downturn follows up from yesterday’s rally, which came as Balenciaga announced it would be accepting crypto payments. ETH also dropped, falling under $2,000 today. Bitcoin Bitcoin fell under $30,000 on Tuesday, as bears returned to action following a green start to the week. Following a high of $30,547.50 during Monday’s session, BTC /USD fell to an intraday low of $28,975.56 earlier today. Today’s drop saw BTC fall by over 5% in the day, as bullish sentiment following the Balenciaga crypto announcement faded. BTC /USD – Daily Chart Since then, bears have now pushed prices closer to support at $28,800, which is an area where BTC has resided over the past few weeks. Looking at the chart, the 14-da...
Post a Comment
Read more

Tiffany & Co. NFT Sale Sells out, Luxury Jewelry Retailer Rakes in $12.5M in Ethereum

http://motleybloggers.com/wp-content/uploads/2022/08/tiffany-co-nft-sale-sells-out-luxury-jewelry-retailer-rakes-in-12-5m-in-ethereum.jpg On August 5, 2022, the American luxury jewelry retailer Tiffany & Co. announced that the company’s non-fungible token (NFT) mint called “Nftiff” sold out. Tiffany’s sold 250 Nftiffs for 30 ethereum per Nftiff raking in more than $12.5 million from the sale. The NFTs created by Tiffany’s have to be redeemed by August 12 and so far 94 Nftiffs have been redeemed. Tiffany & Co. NFT Sale Sells Out Gathering $12.5 Million in Ether Six days ago, MotleyBloggers.com News reported on Tiffany & Co. revealing an NFT mint called “Nftiff,” a new product crafted by Tiffany’s that combines non-fungible token technology and luxury jewelry. Since then Tiffany’s has hosted its sale and all 250 NFT units sold out, according to a tweet published by the company on August 5. “Depending on which Crypt...
Post a Comment
Read more