The head of the Bank of England expresses his concern about El Salvador’s decision to adopt bitcoin as its official currency

The Governor of the Bank of England, Andrew Bailey, has manifested your concern about El Salvador’s decision to convert bitcoin into legal tender.

“I am concerned that the country will choose this currency as its national,” Bailey said in response to a question during a speech Thursday at Cambridge University. “What worries me the most is if Salvadoran citizens understand the nature and volatility of the currency they own“, he expressed.

In addition, Bailey added that the International Monetary Fund (IMF), which monitors risks to world financial markets, is not happy with the financial policy of the Central American nation.

The final mission statement of the IMF in El Salvador in 2021 suggests that cryptographic technology and digital payment systems have the ability to improve the efficiency of transactions, but “considering the high volatility of bitcoin prices, its use as a national currency carries significant risks to consumer protection, integrity and financial stability “.

Although the Bank of England, together with Her Majesty’s Treasury of the United Kingdom, are exploring the possibility of creating their own digital currency, it will exist alongside cash and deposits, and is not going to replace them.

The Government of El Salvador acquired this November 26 another 100 bitcoins, taking advantage the 7.7% drop of its value, according to tuted the same day the president of the country, Nayib Bukele, who converted the virtual currency into legal tender along with the dollar as of September 7.

“El Salvador just bought low,” Bukele wrote on Twitter.

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