Making Bitcoin Legal Tender in El Salvador an ‘Interesting Experiment,’ Central Banking Official Says

11 June 2021

The Bank for International Settlements (BIS) head of the innovation hub, Benoit Coeure, said El Salvador’s move to adopt bitcoin as legal tender is an interesting experiment, according to a report.

  • "El Salvador, that is an interesting experiment indeed," Coeure said at the launch of a regulatory research hub at the Bank of England on Friday, Reuters reports.
  • "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 as such," said Coeure.
  • El Salvador became the first in the world to recognize bitcoin as legal tender and mandate its acceptance across all businesses.
  • On Tuesday a supermajority of the nation’s legislature voted in favor of President Nayib Bukele’s proposal for the nation to adopt bitcoin.
  • The BIS executive is the latest to express concern about the Latin American country’s decision to adopt bitcoin as legal tender.
  • On Thursday, International Monetary Fund spokesperson Gerry Rice said El Salvador's plan to adopt bitcoin as legal tender raises "macroeconomic, financial and legal issues."
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