El Salvador's decision to make bitcoin legal tender is an "interesting experiment" with a speculative asset that does not pass the test

BIS official casts doubt on El Salvador bitcoin 'experiment'

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2021-06-11 16:00:07

El Salvador's decision to make bitcoin legal tender is an "interesting experiment" with a speculative asset that does not pass the test for being a reliable means of payment, a senior global central banking official said on Friday.

The central American country on Wednesday became the first country in the world to adopt bitcoin as its national currency, saying it would help Salvadorans living abroad send remittances home. read more

"El Salvador, that is an interesting experiment indeed," said Benoit Coeure, head of the innovation hub at the Bank for International Settlements (BIS).

"We have been clear at the BIS that we don't see bitcoin as having passed the test of being a means of payments. Bitcoin is a speculative asset and should be regulated at such," Coeure said at the launch of a regulatory research hub at the Bank of England (BoE).

The comments echo remarks from the International Monetary Fund, which said on Thursday it had economic and legal concerns regarding El Salvador's move. read more